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Which of the following accounting equation is correct

This question belongs to Commerce Accounting
Accounting
?

Which of the following accounting equation is correct?

Answer & Solution
Correct Answer: Option C
Assets - Liabilities = Capital is correct.
The Accounting Equation states that the Assets are always equal to the sum of Capital & Liabilities.
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D Maebelo
D Maebelo 7 years ago
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
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