Which of the following is correct?
A)Total assets + Partner's equity = Total liabilities.
B)Total assets + Partner's equity - Total liabilities = Total equity.
C)Total assets - Partner's equity = Total liabilities.
D)Total assets + Total liabilities = Partner's equity.

Question

Quizplus · Accepted Answer

The correct equation is Total assets - Partner's equity = Total liabilities. This is a rearrangement of the basic accounting equation: Total assets = Total liabilities + Owner's/Partner's equity.

Which of the Following Is Correct