Which of the following is the correct accounting equation?
A) Assets + Liabilities = Equity
B) Assets = Liabilities + Equity
C) Assets + Revenues = Equity
D) Assets + Revenues = Liabilities + Expenses

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Equity, meaning that the total assets of a company must equal the total of its liabilities and equity. This equation is the foundation of double-entry bookkeeping and ensures that all transactions are properly recorded.

Which of the Following Is the Correct Accounting Equation