Which of the following represents the accounting equation?

A) Assets + Liabilities = Owners' Equity
B) Assets = Liabilities + Owners' Equity
C) Liabilities = Assets + Owners' Equity
D) Owners' Equity - Liabilities = Assets

Accounting Equation

The accounting equation is a fundamental principle of accounting that states that assets equal liabilities plus equity; it forms the basis for double-entry bookkeeping.

Owners' Equity

Represents the amount of capital that the owners or shareholders have in the company after deducting liabilities from assets.

Assets

Resources owned by a business or individual, considered valuable because they can be used to produce goods, services, or generate revenue.