The accounting equation is expressed as:
A) Assets = liabilities + owner's equity
B) Liabilities= assets + owner's equity
C) Owner's equity = assets + Liabilities
D) Net income = revenue + expenses

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Owner's Equity. This equation represents the fundamental relationship between the three main components of a company's financial statements: assets, liabilities, and equity. Assets are resources owned by the company, liabilities are debts or obligations owed by the company to outside parties, and owner's equity represents the owner's share of the company's assets after all liabilities are paid.

The Accounting Equation Is Expressed As