Which of the following calculations is a formal expression of the accounting equation?
A)assets + liabilities = owners' equity
B)assets liabilities = retained earnings
C)assets - owners' equity = liabilities
D)assets = liabilities + owners' equity
E)assets/liabilities = owners' equity

Question

Quizplus · Accepted Answer

The correct formal expression of the accounting equation is "assets = liabilities + owners' equity." This equation is fundamental in accounting, indicating that what a company owns (assets) is funded by what it owes (liabilities) and the owners' investments (owners' equity).

Which of the Following Calculations Is a Formal Expression of the Accounting