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The fundamental accounting equation derived from the Dual Aspect Concept is:
ACapital = Revenue − Cost
BAssets = Income − Expenses
CAssets = Liabilities + Capital
DProfit = Sales − Material
Answer & Solution
Correct answer: C. Assets = Liabilities + Capital
1. Per OCR: "the duality concept is commonly expressed in terms of fundamental accounting equation: Assets = Liabilities + Capital".
2. Every transaction has two effects — debit + credit.
3. Both sides of the equation always balance.
_Source: ICMAI BoS CMA Foundation Paper 2 (FFCA) — Paper2_07042026.pdf, Module 1 §1.2.2.1 (page 17)_