alleryStart learning →Which statement gives the basic accounting equation?
AAssets = Liabilities - Equity
BEquity = Assets + Liabilities
CAssets = Liabilities + Equity
DAssets + Liabilities = Equity
Answer & Solution
Correct answer: C. Assets = Liabilities + Equity
Assets are funded either by outsiders (liabilities) or by owners (equity), so the two sides add up to assets.
Keep practising Double-Entry Bookkeeping
Browse all Double-Entry Bookkeeping questions for CA Foundation, or explore more Accounting topics.
Related questions
A contra account carries a balance that is what?What does the retained earnings account reflect?What does a chart of accounts list?Revenue and expense accounts are regarded as what kind of accounts?A service is performed for a customer who pays later. Which account is credited?By accepted practice, how are credit entries shown in a journal?Which of these is a long-term liability?Which of these is an equity account?