Question

The Correct Form of Accounting Equation Is

Answer 1

(a) Assets – Receivable = Equity

(b) Assets + Receivable = Equity

(c) Assets – Liabilities = Equity

(d) Assets + Liabilities = Equity

Answer:

(c) Assets – Liabilities = Equity

The correct form of accounting equation is Assets – Liabilities = Equity. It can also be written as Assets = Liabilities + Equity. This equation is also known as the balance sheet equation.

Also read:

• Difference Between Assets and Liabilities
• What Is Accounting Equation

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