GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following accounting equation is correct?
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Capital- Liabilities = Assets
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Capital = Assets + Liabilities
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Capital + Assets = Liabilities
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Capital + Liabilities= Assets
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Explanation:
Detailed explanation-1: -The correct form of accounting equation is Assets – Liabilities = Equity. It can also be written as Assets = Liabilities + Equity.
Detailed explanation-2: -Assets = Capital + Liabilities That is, through investment from the owners (capital) or by amounts owed to creditors (liabilities).
Detailed explanation-3: -The Accounting equation is expressed as the Assets = Liabilities + Equity.
Detailed explanation-4: -In the accounting equation, assets are equal to liabilities plus equity. You can find a company’s assets, liabilities, and equity on a few key financial statements, including the balance sheet and the income statement.
There is 1 question to complete.