Q311
Which one of the following accounting equations is correct?
A.
Assets = Owner's equity
B.
Assets = Liabilities + Owner's equity
AnswerC.
Assets = Liabilities - Owner's equity
D.
Assets + Liabilities = Owner's equity
Answer: Option B
Solution
Answer: Option B
Solution:
Assets = Liabilities + Owner's eq accounting equations is correct. It shows that a company's total amount of assets equals the total amount of liabilities plus owner's (or stockholders') equity.