Regarding the accounting equation,which of the following is a correct statement?
A) The accounting equation is made up of three parts.
B) The accounting equation is the basic tool of accounting.
C) Assets - Liabilities = Equity.
D) All of the statements are correct.

Question

Quizplus · Accepted Answer

All of the statements are correct. The accounting equation consists of three parts: assets, liabilities, and equity. It is considered the basic tool of accounting and its formula is Assets = Liabilities + Equity or rearranged as Assets - Liabilities = Equity.

Regarding the Accounting Equation,which of the Following Is a Correct