Given the options below, identify the correct accounting equation formula. A)Assets = Liabilities + Owner's Equity. B)Assets + Liabilities = Owner's Equity. C)Assets + Owner's Equity = Liabilities. D)Liabilities = Assets + Owner's Equity.

Question

Quizplus · Accepted Answer

The correct accounting equation formula is Assets = Liabilities + Owner's Equity. This means that the total assets of a company must always balance out with the total liabilities and owner's equity.

Given the Options Below, Identify the Correct accounting Equation Formula