The basic accounting equation is:A) Assets = Revenues - Expenses.B) Assets = Liabilities - Owner's Equity.C) Profit = Revenues - Expenses.D) Assets = Liabilities + Owner's Equity.

Question

The basic accounting equation is:A)  Assets = Revenues - Expenses.B)  Assets = Liabilities - Owner's Equity.C)  Profit = Revenues - Expenses.D)  Assets = Liabilities + Owner's Equity.

Kenneth Brumbaugh · Accepted Answer

Final Answer : D, Explanation :  The basic accounting equation states that a company's total assets are equal to the sum of its liabilities and owner's equity. This fundamental principle underlies double-entry bookkeeping.

The basic accounting equation is:

A) Assets = Revenues - Expenses.
B) Assets = Liabilities - Owner's Equity.
C) Profit = Revenues - Expenses.
D) Assets = Liabilities + Owner's Equity.

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