The balance sheet equation states that total assets equals:
A)total liabilities plus depreciation
B)total liabilities plus owners' equity
C)owners' equity plus net income
D)owners' equity plus current liabilities

Question

Quizplus · Accepted Answer

The balance sheet equation is Assets = Liabilities + Owners' Equity. This means that the total amount of assets that a company owns must be equal to the total amount of claims against those assets (liabilities) plus the owners' residual interest in the assets (owners' equity).

The Balance Sheet Equation States That Total Assets Equals