Asked by Reginald Joseph on Jul 28, 2024
Verified
The accounting equation may be expressed as
A) Assets = Equities − Liabilities
B) Assets + Liabilities = Owner's Equity
C) Assets = Revenues − Liabilities
D) Assets − Liabilities = Owner's Equity
Accounting Equation
The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Owner's Equity, representing a company's financial position.
Assets
Resources owned by a business or individual that are expected to provide future economic benefits.
Liabilities
Liabilities are financial obligations or debts that an entity owes to external parties, expected to be settled over time through the transfer of economic benefits.
- Understand the basics of the accounting equation and its components.
Verified Answer
Learning Objectives
- Understand the basics of the accounting equation and its components.
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