Which of the following equations is correct?
A) Using balance sheet accounts:
Sum of debit balances - Sum of credit balances = Net income
B) Using trial balance accounts:
Sum of debit balances = Sum of credit balances
C) Using income statement accounts:
Sum of credit balances - Sum of debit balances = Net income
D) All of these.

Question

Quizplus · Accepted Answer

All of the equations are correct because they represent different accounting equations that are used in different contexts.

Which of the Following Equations Is Correct