Question

Which of the following accounting equations is not correct?

• A. Assets - Liabilities = Equity
• B. Assets - Equity = Liability
• C. Liabilities + Equity = Assets
• D. All of the above

Answer 1

The correct option is A Assets - Liabilities = Equity

The Equation is :

Owner's Funds+Liabilities=Total Assets

Capital+ Reserves & Surplus= Fixed Assets+Current Assets

Therefore both the sides are equal i.e. assets and liabilities.

Hence below equation is not correct

Assets-Liabilities=Equity