An alternative form of the accounting equation is:

Question

Quizplus · Accepted Answer

The alternative form of the accounting equation is Assets - Liabilities = Stockholders' Equity. This is because the equation can be rearranged to show that the stockholders' equity represents the residual interest in the assets of the company, after all liabilities have been paid. Therefore, this equation is useful in determining the amount of equity that remains with the stockholders after all liabilities have been settled.

An Alternative Form of the Accounting Equation Is