The accounting equation can be expressed on the Balance Sheet as
A)Assets = Liabilities x Owner's equity
B)Assets = Liabilities - Owner's equity
C)Assets = Liabilities + Owner's equity
D)Assets = Liabilities ÷ Owner's equity

Question

Quizplus · Accepted Answer

The accounting equation states that Assets (what a company owns) is equal to Liabilities (what a company owes) plus Owner's Equity (what is left over for the owner after liabilities are paid off). Therefore, the correct expression on the balance sheet would be Assets = Liabilities + Owner's Equity.

The Accounting Equation Can Be Expressed on the Balance Sheet