Question

Which of the following is the accounting equation for a non-profit organization ?

• A. Asset = Capital + Liabilities
• B. Capital + Liabilities = Assets
• C. Accumulated fund + Liabilities = Assets
• D. Liabilities = Asset + Accumulated fund

Answer 1

The correct option is C Accumulated fund + Liabilities = Assets

Accounting equation is a statement representing a relationship between a company's assets, liabilities and its capital.

The accounting equation for non-profit organisation is the sum of company's liabilities and the accumulated fund or capital fund which equals to the assets possessed by organisation.

$Accumulatedfund+Liabilities=Assets$.