WAEC Financial Accounting 1992 Question 7

Question 7

Accounting Equation

The accounting equation is

  1. A.assets and liabilities amount to capital
  2. B.capital less assets amounts to liabilities
  3. C.assets less liabilities amount to capital
  4. D.capital and assets amount to liabilities
  5. 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.