Which of the following is not a satisfactory statement of the accounting equation?
A) Assets = Liabilities + Stockholders' Equity
B) Assets - Stockholders' Equity = Liabilities
C) Assets = Liabilities - Stockholders' Equity
D) Assets - Liabilities = Stockholders' Equity

Question

Quizplus · Accepted Answer

The accounting equation must always balance, meaning the assets must always equal the sum of liabilities and stockholders' equity. Option C shows stockholders' equity being deducted from liabilities, which does not make sense and is not a correct statement of the accounting equation.

Which of the Following Is Not a Satisfactory Statement of the Accounting