alleryThe accounting equation is
AAssets = Liabilities + Capital
BAssets + Capital = Liabilities
CCapital = Assets + Liabilities
DAssets = Capital − Liabilities
Answer & Solution
Correct answer: A. Assets = Liabilities + Capital
Assets = Liabilities + Capital — the foundation of the dual-aspect (double-entry) system.
Keep practising Introduction to Accounting & Recording Transactions
Browse all Introduction to Accounting & Recording Transactions questions for AP Intermediate 1st Year, or explore more Accountancy topics.
Related questions
Overstating profits may lead to what harmful result?Which is an application of the conservatism concept?Stock costing Rs 40,000 has a market value of Rs 35,000. At what value is closing stock shHow does conservatism treat expected gains and possible losses?Conservatism, also called prudence, is based on which policy?Does consistency prohibit a change in accounting policy?If depreciation methods differ between two years, what is lost?Which concept needs the same accounting policies used from year to year?