Q56
Which of the following accounting equation is correct?
A.
Cash + Other assets = Capital - Liabilities
B.
Capital + Liabilities = Assets + Income
C.
Assets - Liabilities = Capital
AnswerD.
Assets + Capital = Liabilities
Answer: Option C
Solution
Answer: Option C
Solution:
Assets - Liabilities = Capital is correct. The Accounting Equation states that the Assets are always equal to the sum of Capital & Liabilities.