The formula for the basic accounting equation is
A) OWNER'S EQUITY = TOTAL LIABILITIES -TOTAL ASSETS.
B) OWNER'S EQUITY = TOTAL ASSETS + TOTAL LIABILITIES.
C) TOTAL ASSETS = TOTAL LIABILITIES + OWNER'S EQUITY.
D) TOTAL ASSETS = TOTAL LIABILITIES - OWNER'S EQUITY.
E) TOTAL LIABILITIES = TOTAL ASSETS + OWNER'S EQUITY.

Question

Quizplus · Accepted Answer

The basic accounting equation states that the total assets of a business are equal to the sum of its total liabilities and owner's equity. This is represented as Total Assets = Total Liabilities + Owner's Equity.

The Formula for the Basic Accounting Equation Is