The accounting equation is _____.
A) Assets = Liabilities Owner's Equity
B) Liabilities = Assets + Revenue
C) Assets = Liabilities + Owner's Equity
D) Assets = Liabilities + Net Income

Question

The accounting equation is _____.
A) Assets = Liabilities ­ Owner's Equity
B) Liabilities = Assets + Revenue
C) Assets = Liabilities + Owner's Equity
D) Assets = Liabilities + Net Income

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Owner's Equity. This equation must always balance, meaning that the total assets must equal the total of liabilities and equity.

The Accounting Equation Is _____