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What is the basic accounting equation

This question belongs to Commerce Accounting
Accounting
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What is the basic accounting equation?

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Correct Answer: Option A
Capital + Liabilities = assets is the basic accounting equation. The fundamental accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a person or business. It is the foundation for the double-entry bookkeeping system.
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1 Comment
Tolesa Debela
Tolesa Debela 7 years ago
Assets =Liabilities + Owner’s Equity.
It is usual to place liabilities before the owner’s equity in the accounting equation because creditors have first rights to the assets.
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