Assets = Liabilities + Equity is known as the:
A)Income statement equation
B)Cost principle
C)Objectivity principle
D)Accounting equation
E)Transaction principle

Question

Quizplus · Accepted Answer

Assets = Liabilities + Equity is the basis of double-entry accounting and is commonly known as the accounting equation. This equation must always be balanced, meaning that the total value of assets must always equal the sum of liabilities and equity.

Assets = Liabilities + Equity Is Known as The