Which of these represent the accounting equation?
A)Liabilities = Assets + Owners' Equity
B)Assets = Liabilities + Owners' Equity
C)Assets = Liabilities - Owners' Equity
D)Owners' Equity = Assets + Liabilities

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Owners' Equity, which means that the total amount of assets in a company must be equal to the sum of its liabilities and owners' equity. This equation is important because it reflects the financial position of the company at any given time. Option (A) has the right elements but in the wrong order, while option (C) has a minus sign instead of a plus sign, which would result in the equation being incorrect. Option (D) has the same elements as option (B) but in the wrong order.

Which of These Represent the Accounting Equation