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Examveda

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.

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Comments ( 1 )

  1. D Maebelo
    D Maebelo :
    2 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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