The accounting equation shows us that the value of a firm's assets must equal the:
A) value of the firm's earnings at any specific point in time.
B) value of the firm's revenues minus expenses.
C) amount of owners' equity.
D) amount of financing provided by owners and creditors.

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Owners' Equity, which means the value of a firm's assets must equal the total financing provided by both owners (equity) and creditors (liabilities).

The Accounting Equation Shows Us That the Value of a Firm's