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

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Owner's Equity, which means that the total assets of a company are equal to the total liabilities and owner's equity. This equation must always balance in order for the financial statements to be accurate. Therefore, option A is the correct formula for the accounting equation.

Given the Options Below,identify the Correct Accounting Equation Formula