The basic accounting equation can be restated in terms of cash by the following equation: Cash = current liabilities + long-term liabilities + capital stock - retained earnings - noncash current assets + long-term assets.

Question

Quizplus · Accepted Answer

The basic accounting equation is Assets = Liabilities + Equity, and it cannot be accurately restated in the form given because it mixes elements of the equation in a way that does not represent the fundamental relationship between assets, liabilities, and equity correctly.

The Basic Accounting Equation Can Be Restated in Terms of Cash