Which one of the following is a correct fundamental accounting equation?
A)Assets + Liabilities = Stockholders' Equity
B)Assets + Retained Earnings = Stockholders' Equity
C)Assets + Stockholders' Equity = Liabilities
D)Assets = Liabilities + Stockholders' Equity

Question

Quizplus · Accepted Answer

The fundamental accounting equation is Assets = Liabilities + Stockholders' Equity. This equation represents the basic principle of double-entry accounting, which states that every transaction has equal debits and credits. Assets represent what a company owns, while liabilities and stockholders' equity represent how assets are financed.

Which One of the Following Is a Correct Fundamental Accounting