Asked by Stephen Sieczkowski on May 02, 2024
Verified
An acceptable variation of the accounting equation is:
A) Assets - Owner's Equity = Liabilities.
B) Revenues = Profit - Expenses.
C) Assets = Liabilities - Owner's Equity.
D) All of these answers are correct.
Accounting Equation
The fundamental equation that represents the relationship between assets, liabilities, and owner's equity (Assets = Liabilities + Owner's Equity).
Owner's Equity
The residual interest in the assets of a company after deducting its liabilities; also known as shareholders' equity.
Liabilities
Financial obligations owed by a business to others, such as loans, accounts payable, and mortgages.
- Acknowledge the implementation of the accounting equation in business operations.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
A
Explanation :
The correct variation of the accounting equation is Assets = Liabilities + Owner's Equity. Therefore, rearranging to solve for Liabilities gives Assets - Owner's Equity = Liabilities, which matches option A.
Learning Objectives
- Acknowledge the implementation of the accounting equation in business operations.