In the double-entry bookkeeping system,the two entries allow for balance in the accounting equation:
A) Owner's Equity = Assets + Liabilities
B) Liability = Assets + Owner's Equity
C) Assets = Liabilities + Owner's Equity
D) None of the above

Question

​In the double-entry bookkeeping system,the two entries allow for balance in the accounting equation:
A) Owner's Equity = Assets + Liabilities
B) ​Liability = Assets + Owner's Equity
C) ​Assets = Liabilities + Owner's Equity
D) ​None of the above

Quizplus · Accepted Answer

The correct accounting equation is Assets = Liabilities + Owner's Equity. This equation is fundamental in the double-entry bookkeeping system, ensuring that every financial transaction affects two accounts to keep the equation in balance.

​In the Double-Entry Bookkeeping System,the Two Entries Allow for Balance

In the Double-Entry Bookkeeping System,the Two Entries Allow for Balance