Question 7
Accounting EquationThe accounting equation is
- A.assets and liabilities amount to capital
- B.capital less assets amounts to liabilities
- C.assets less liabilities amount to capital
- D.capital and assets amount to liabilities
- E.fixed assets and current liabilities amount to capital.
Show the answer and explanation
Answer: C (assets less liabilities amount to capital)
Explanation
Assets − Liabilities = Capital.