Accounting equation:
AAssets = Liabilities − Equity
BAssets = Liabilities + EquityCORRECT
CEquity = Assets + Liabilities
DLiabilities = Assets + Equity
ICANFinancial Accounting
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
A = L + E. Fundamental equation; preserved by every double-entry.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →
Practice more Financial Accounting questions
ICAN Financial Accounting has thousands more questions like this — with Worked answers on every one.