Which financial statement represents the accounting equation:
ASSETS = LIABILITIES + OWNER'S EQUITY?

Income Statement

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Cash Flow Statement

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Balance Sheet

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Fund Flow Statement

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Solution

The correct option is D Balance Sheet
Balance sheet is a statement of affairs of the business on a particular date. Balance sheet shows assets , liabilities and capital of the business.
Accounting equation may be defines as:

Owner's Equity+ Liabilities=Total Assets
Owner's Equity+ Liabilities=Current Assets+Fixed Assets

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Similar questions

A s s e t s = L i a b i l i t i e s + O w n e r^{'} s e q u i t y

Using the concept of accounting equation, compute missing figure from the following:
Assets = Rs 50,000, Liabilities = Rs 20,000, Owner’s Capital = ?

Following is the Financial Statement of Garima Ltd., prepare cash flow statement.


Particulars	Note No.	31^st March 2017 (Rs)	31^st March 2016 (Rs)
I) Equity and Liabilities
1. Shareholders’ Funds
a) Share capital	1	4,40,000	2,80,000
b) Reserve and surplus-Surplus	2	40,000	28,000
2. Current Liabilities
a) Trade payables		1,56,000	56,000
c) Short-term provisions		12,000	4,000
(Provision for taxation)
Total		6,48,000	3,68,000
II) Assets
1. Non-current assets
a) Fixed assets
i) Tangible		3,64,000	2,00,000
2. Current assets
a) Inventories		1,60,000	60,000
b) Trade receivables		80,000	20,000
c) Cash and cash equivalents		28,000	80,000
d) Other current assets		16,000	8,000
Total		6,48,000	3,68,000

Notes to Accounts

Particulars	31st March 2017 (Rs)	31st March 2016 (Rs)
1. Share capital
a) Equity share capital	3,00,000	2,00,000
b) Preference share capital	1,40,000	80,000
	4,40,000	2,80,000
2. Reserve and surplus
Surplus in statement of profit and loss at the beginning of the year	28,000
Add: Profit of the year	16,000
Less: Dividend	4,000
Profit at the end of the year	40,000

Additional Information:

7, 000

3, 000

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