The fundamental accounting equation is:
AAssets = Liabilities − Equity
BAssets = Liabilities + EquityCORRECT
CEquity = Assets + Liabilities
DAssets + Equity = Liabilities
CIBNFinancial Accounting
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Why the answer is B, and why the others tempt you.
Assets = Liabilities + Equity. Every double-entry maintains this balance.
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