The fundamental accounting equation would remain in balance if equal amounts were added to both sides of the equation.

Question

Quizplus · Accepted Answer

The fundamental accounting equation states that Assets = Liabilities + Equity. If equal amounts were added to both sides of the equation, the equation would still be in balance. For example, if $1000 were added to both sides of the equation, it would become:

Assets + $1000 = Liabilities + Equity + $1000

This equation is still balanced, as both sides have the same value.

The Fundamental Accounting Equation Would Remain in Balance If Equal