The accounting equation may be expressed as
A) Assets = Equities − Liabilities
B) Assets + Liabilities = Stockholders' Equity
C) Assets = Revenues − Liabilities
D) Assets − Liabilities = Stockholders' Equity

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Stockholders' Equity. By rearranging the equation, we get Assets - Liabilities = Stockholders' Equity. Therefore, D is the correct choice.

The Accounting Equation May Be Expressed as