Which of the following is the correct accounting equation?
A)Assets = Liabilities + Stockholders' Equity
B)Assets + Stockholders' Equity = Liabilities
C)Assets = Liabilities - Stockholders' Equity
D)Assets + Liabilities = Stockholders' Equity

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Stockholders' Equity. This equation represents the fundamental relationship between a company's assets, or the resources it owns, and its sources of funds, which are either liabilities, or debts owed to others, or stockholders' equity, or the funds provided by investors. By balancing these two sides of the equation, a company can track the changes in its financial position over time and assess its ability to meet its obligations and generate returns for its owners.

Which of the Following Is the Correct Accounting Equation