The fundamental accounting formula is
A) beginning inventory + purchases - ending inventory = food used
B) assets = liability + equity
C) current ratio = current assets to current liabilities
D) net profit = gross profit - expenses

Question

Quizplus · Accepted Answer

The fundamental accounting formula, also known as the accounting equation, is Assets = Liabilities + Equity. This equation is the foundation of double-entry bookkeeping, representing the balance sheet's structure where each side must equal the other.

The Fundamental Accounting Formula Is