Which of the following is the CORRECT accounting equation?
A) Assets + Liabilities = Owners' equity
B) Assets = Liabilities + Owners' equity
C) Assets + Revenue = Owners' equity
D) Assets + Revenue = Liabilities + Expenses

Question

Quizplus · Accepted Answer

The correct accounting equation is Assets = Liabilities + Owners' Equity. This equation states that the amount of assets a company has must equal the combined amount of liabilities and owners' equity. This equation is the foundation for all accounting and financial reporting.

Which of the Following Is the CORRECT Accounting Equation