Which of the following is the reason that the accounting equation is true by definition?

Question

Quizplus · Accepted Answer

The accounting equation by definition must always balance because it represents the fundamental concept that assets are acquired through a combination of liabilities and owner's equity. Therefore, C is the correct choice as it states that liabilities and owner's equity are the sources that fund the purchase of assets, which is the fundamental concept of the accounting equation. A and B are not correct, as they only represent one part of the equation, and D is not correct as the accounting equation is not a coincidence, but rather a fundamental principle of accounting.

Which of the Following Is the Reason That the Accounting