Which of the following accounting equation is correct?
A. Cash + Other assets = Capital - Liabilities
B. Capital + Liabilities = Assets + Income
C. Assets - Liabilities = Capital
D. Assets + Capital = Liabilities
Answer: Option C
Solution (By Examveda Team)
Assets - Liabilities = Capital is correct.The Accounting Equation states that the Assets are always equal to the sum of Capital & Liabilities.
This Question Belongs to Commerce >> Accounting
Which one of the following variations of the accounting equation is incorrect? (1) Liabilities = Assets - Equity (2) Assets = Equity + Liabilities (3) Equity = Assets + Liabilities (4) Equity = Assets - Liabilities