Which of the following balance sheet equations is NOT CORRECT?
A)Assets - Current Liabilities = Long-Term Liabilities
B)Assets - liabilities = Shareholders' Equity
C)Assets = Liabilities + Shareholders' Equity
D)Assets - Current Liabilities = Long-Term Liabilities + Shareholders' Equity

Question

Quizplus · Accepted Answer

The correct equation is Assets - Liabilities = Shareholders' Equity, which means that the total value of the company's assets must equal the sum of its liabilities and shareholders' equity. Option A is incorrect as it suggests that the difference between assets and current liabilities is equal to long-term liabilities, which is not accurate.

Which of the Following Balance Sheet Equations Is NOT CORRECT