Which of the following statements is true?
A) Liabilities equal assets plus shareholders' equity.
B) Shareholders' equity equals assets plus liabilities.
C) Shareholders' equity equals liabilities minus assets.
D) Assets equal liabilities plus shareholders' equity.
E) Assets equal liabilities minus shareholders' equity.

Question

Quizplus · Accepted Answer

Assets equal liabilities plus shareholders' equity. This is the fundamental accounting equation, which forms the basis of the balance sheet in financial accounting.

Which of the Following Statements Is True