The fundamental accounting equation states that assets equal _______.
A)liabilities plus owners' equity
B)liabilities plus receivables
C)liabilities minus owners' equity
D)payables plus cash equivalents

Question

Quizplus · Accepted Answer

The fundamental accounting equation, also known as the balance sheet equation, states that assets must always equal liabilities plus owners' equity. This equation must always balance in order to ensure the accuracy of a company's financial statements.

The Fundamental Accounting Equation States That Assets Equal _______