Which one of these equations is an accurate expression of the balance sheet?
A)Assets ≡ Liabilities − Stockholders' equity
B)Stockholders' equity ≡ Assets + Liabilities
C)Liabilities ≡ Stockholders' equity − Assets
D)Assets ≡ Stockholders' equity − Liabilities
E)Stockholders' equity ≡ Assets − Liabilities

Question

Quizplus · Accepted Answer

The correct expression for a balance sheet is Assets = Liabilities + Stockholders' Equity. Rearranging this equation gives Stockholders' Equity = Assets - Liabilities, which matches choice E.

Which One of These Equations Is an Accurate Expression of the Balance