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