Which of the following is an appropriate representation of the accounting equation?

Question

Quizplus · Accepted Answer

The accounting equation states that Assets are equal to Liabilities plus Stockholders' Equity. This can be represented as Assets = Liabilities + Stockholders' Equity, which is option B. Option A has the order of liabilities and stockholders' equity reversed, option C omits Stockholders' Equity, and option D includes Retained Earnings, which is only a part of Stockholders' Equity.

Which of the Following Is an Appropriate Representation of the Accounting