The accounting equation may be expressed as
A) Assets = Equities - Liabilities
B) Assets + Liabilities = Owner's Equity
C) Assets = Revenues less Liabilities
D) Assets - Liabilities = Owner's Equity

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Owner's Equity. By algebraic manipulation, we can also express it as Assets - Liabilities = Owner's Equity. Option D is the only answer choice that correctly represents this equation.

The Accounting Equation May Be Expressed as