The basic accounting equation, in a proprietorship, CANNOT be restated as
A) Assets - Liabilities = Owner's Equity.
B) Assets - Owner's Equity = Liabilities.
C) Owner's Equity + Liabilities = Assets.
D) Assets + Liabilities = Owner's Equity.

Question

Quizplus · Accepted Answer

The basic accounting equation is Assets = Liabilities + Owner's Equity. Option D, "Assets + Liabilities = Owner's Equity," incorrectly rearranges the components of the equation and does not accurately represent the relationship between assets, liabilities, and owner's equity.

The Basic Accounting Equation, in a Proprietorship, CANNOT Be Restated