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
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Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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