Which of the following equations is equivalent to the accounting equation?
A) Equity = liabilities - assets
B) Owners' equity = assets - liabilities
C) Revenues - expenses = net income
D) Net income = expenses - revenues + taxes
E) Profit = sales - revenues

Question

Quizplus · Accepted Answer

Assets= liabilities + owners' equity therefore subtracting liabilities from the equation would present the equation as Owners' equity = assets - liabilities.

Which of the Following Equations Is Equivalent to the Accounting