An acceptable variation of the accounting equation is:
A) Assets - Owner's Equity = Liabilities.
B) Revenues = Profit - Expenses.
C) Assets = Liabilities - Owner's Equity.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

The correct variation of the accounting equation is Assets = Liabilities + Owner's Equity. Therefore, rearranging to solve for Liabilities gives Assets - Owner's Equity = Liabilities, which matches option A.

An Acceptable Variation of the Accounting Equation Is