The correct accounting equation formula is: A

Accounting Dec 16, 2020

The correct accounting equation formula is:

A. Assets = Liabilities - Owner's Equity

B. Assets = Liabilities + Owner's Equity

C. Assets + Liabilities = Owner's Equity

D. Assets + Liabilities = Owner's Equity

Expert Solution

Answer choice: B. Assets = Liabilities + Owner's Equity

The accounting equation is presented on the balance sheet of a company. The balance sheet lists total assets, liabilities, and owner's equity of a company as of the end of an accounting period. Assets are future resources of a company and liabilities represent debts or obligations of a company.

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