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Which of the following equation is true for balance sheet

A. Assets = Liabilities + Capital

B. Liabilities = Assets + Capital

C. Capital = Assets + Liabilities

D. All of these

Answer: Option A

Solution(By Examveda Team)

The balance sheet displays the company’s total assets, and how these assets are financed, through either debt or equity. It can also be referred to as a statement of net worth, or a statement of financial position. The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity(Capital).

This Question Belongs to Computer Fundamentals >> Tally

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Comments ( 2 )

  1. AJ Nath
    AJ Nath :
    3 years ago

    Assets=Capital+Liabilities
    Capital=Assets-Liabilities
    Liabilities=Assets-Capital

  2. Neha Batra
    Neha Batra :
    4 years ago

    if assets=liabilities+capital
    then, liabilities should be assests-capital

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