Which of the following equations is the balance sheet equation?

A) Assets + Liabilities = Stockholders' Equity.
B) Assets + Stockholder's Equity = Liabilities.
C) Assets = Liabilities + Stockholders' Equity.
D) Assets = Liabilities + Common Stock.

Balance Sheet Equation

an accounting formula that represents the relationship between assets, liabilities, and equity (Assets = Liabilities + Equity).

Liabilities

Financial obligations or debts that a company owes to others, which must be settled through the transfer of assets or services.

Assets

Resources owned or controlled by a business that are expected to produce economic value or future benefits.