Asked by Heather Hernandez on May 06, 2024
Verified
The basic accounting equation is:
A) Assets = Revenues - Expenses.
B) Assets = Liabilities - Owner's Equity.
C) Profit = Revenues - Expenses.
D) Assets = Liabilities + Owner's Equity.
Accounting Equation
The fundamental equation of double-entry bookkeeping that states assets equal liabilities plus equity, serving as the foundation for a balance sheet.
Owner's Equity
The total value of assets owned by the proprietor of a company after all debts have been subtracted.
- Achieve insight into the basic framework of the accounting equation (Assets = Liabilities + Owner's Equity).
Verified Answer
KB
Kenneth BrumbaughMay 06, 2024
Final Answer :
D
Explanation :
The basic accounting equation states that a company's total assets are equal to the sum of its liabilities and owner's equity. This fundamental principle underlies double-entry bookkeeping.
Learning Objectives
- Achieve insight into the basic framework of the accounting equation (Assets = Liabilities + Owner's Equity).
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