Maddie is the CEO of Stevenson,Ross,and Warner (SRW) ,a regional accounting firm.SRW offers services in most areas of accounting,including auditing and consulting services.The firm must follow the GAAP rules,just like any other accounting firm.If there are information gaps that are not addressed and resolved by the firm,SRW could be considered a violator of the Sarbanes-Oxley Act.Maddie understands what must be done and wants every employee of the firm to understand that they have to follow all the rules and regulations.Like any other industry,accounting is a competitive industry and employees of accounting firms must be productive,progressive,and well trained.
-Refer to Stevenson,Ross,and Warner.If you applied for a job at SRW and were asked to state the accounting equation,which of these would you state?
A) Assets = liabilities − owners' equity
B) Assets + liabilities = owners' equity
C) Assets ÷ liabilities = owners' equity
D) Assets = liabilities + owners' equity
E) Assets = liabilities × owners' equity

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Owners' Equity. This equation represents the fundamental relationship between assets, liabilities, and owners' equity in accounting.

Maddie Is the CEO of Stevenson,Ross,and Warner (SRW) ,A Regional