Which of the following is the correct expression of the accounting equation?
A) Assets + liabilities = equity.
B) Assets = liabilities - equity.
C) Assets + equity = liabilities.
D) Assets = liabilities + equity.

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Equity, which means that the total value of assets must be equal to the sum of liabilities and equity. Option A is incorrect because it shows assets and liabilities adding up to equity, while option B reverses the equation and subtracts equity from liabilities. Option C also adds equity and assets together, which is not correct.

Which of the Following Is the Correct Expression of the Accounting