The description of the relationship between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the
A) balance sheet
B) accounting equation
C) business equation
D) liability equation
E) profit

Question

Quizplus · Accepted Answer

The accounting equation is a fundamental concept in accounting that represents the relationship between a company's assets, liabilities, and equity. It states that a company's total assets must equal the sum of its total liabilities and equity. It is also known as the balance sheet equation. Therefore, the correct answer is B.

The Description of the Relationship Between a Company's Assets, Liabilities