The formula for the basic accounting equation is
A)OWNER'S EQUITY = TOTAL ASSETS + TOTAL LIABILITIES.
B)OWNER'S EQUITY = TOTAL LIABILITIES - TOTAL ASSETS.
C)TOTAL ASSETS = TOTAL LIABILITIES - OWNER'S EQUITY.
D)TOTAL ASSETS = TOTAL LIABILITIES + OWNER'S EQUITY.
E)TOTAL LIABILITIES = TOTAL ASSETS + OWNER'S EQUITY.

Question

Quizplus · Accepted Answer

The basic accounting equation is expressed as:
TOTAL ASSETS = TOTAL LIABILITIES + OWNER'S EQUITY.
This means that the sum of all assets owned by a company is equal to the sum of all its liabilities and the owner's equity. It is the foundation of double-entry bookkeeping and is used to ensure that all financial transactions are properly recorded and balanced. This equation is also known as the balance sheet equation. Therefore, choice D is the correct answer.

The Formula for the Basic Accounting Equation Is