Assets are equal to liabilities plus equity. This is best described as:
A) net worth
B) working capital
C) accounting identity
D) checks and balances

Question

Quizplus · Accepted Answer

This statement is known as the accounting identity, which is a fundamental equation in accounting that shows that all assets are financed by borrowing money (liabilities) or by using the owner's money (equity).

Assets Are Equal to Liabilities Plus Equity