Asked by Chandler Gozashti on May 12, 2024
Verified
Assets are equal to:
A) Liabilities + Owner's Equity.
B) Liabilities - Owner's Equity.
C) Liabilities - Revenues.
D) Revenues - Expenses.
Owner's Equity
The residual interest in the assets of an entity after deducting liabilities.
Liabilities
Financial obligations or debts that a company owes to external parties or entities.
Assets
Assets are resources owned or controlled by a business, expected to bring future economic benefits.
- Familiarize oneself with the fundamental concepts of the accounting equation (Assets = Liabilities + Owner's Equity).
Verified Answer
AR
Anely ReyesMay 14, 2024
Final Answer :
A
Explanation :
Assets are equal to liabilities plus owner's equity, according to the fundamental accounting equation. This equation forms the basis of the balance sheet, one of the primary financial statements.
Learning Objectives
- Familiarize oneself with the fundamental concepts of the accounting equation (Assets = Liabilities + Owner's Equity).