All of the following are acceptable ways of stating the accounting equation except
A) owners' equity = assets ― liabilities.
B) assets = liabilities + owners' equity.
C) owners' equity ― liabilities = assets.
D) assets ― liabilities = owners' equity.
E) assets = shareholders' equity + liabilities.

Question

Quizplus · Accepted Answer

The correct accounting equation is Assets = Liabilities + Owners' Equity. Option C incorrectly rearranges the equation, suggesting Owners' Equity minus Liabilities equals Assets, which misrepresents the relationship between these components.

All of the Following Are Acceptable Ways of Stating the Accounting