An acceptable variation of the accounting equation is
A) Assets - Liabilities = Owner's Equity.
B) Assets + Owner's Equity = Liabilities.
C) Assets = Liabilities - Owner's Equity.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

The traditional accounting equation is assets = liabilities + owner's equity. Option A is an acceptable variation of this equation, which rearranges the equation to owner's equity = assets - liabilities. Option B is incorrect because it does not include the liabilities component. Option C is incorrect because owner's equity should be added, not subtracted, from liabilities. Option D is incorrect because option C is not a correct answer.

An Acceptable Variation of the Accounting Equation Is