The basic accounting equation is:
A) Assets = Revenues - Expenses.
B) Assets = Liabilities - Owner's Equity.
C) Profit = Revenues - Expenses.
D) Assets = Liabilities + Owner's Equity.

Question

Quizplus · Accepted Answer

The basic accounting equation states that a company's total assets are equal to the sum of its liabilities and owner's equity. This fundamental principle underlies double-entry bookkeeping.

The Basic Accounting Equation Is