Which of the following correctly expresses the accounting equation?
A)Capital + Assets = Liabilities
B)Non-current assets - Current assets + Liabilities = Capital
C)Non-current assets - Current assets - Liabilities = Capital
D)Assets = Capital + Liabilities

Question

Quizplus · Accepted Answer

The accounting equation represents the fundamental relationship between a company’s assets, liabilities, and equity. It states that the total assets of a company are always equal to the sum of its liabilities and equity. This can be expressed as Assets = Liabilities + Equity or, in other words, Assets = Capital + Liabilities. Option D correctly expresses this relationship.

Which of the Following Correctly Expresses the Accounting Equation