Which One of the Following Is a Correct Expression of the Accounting

question 92

Multiple Choice

Which one of the following is a correct expression of the accounting equation?

• A)Assets + Liabilities = Owners' Equity
• B)Assets = Liabilities - Owners' Equity
• C)Assets + Owners' Equity = Liabilities
• D)Assets = Liabilities + Owners' Equity

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Definitions:

Growth In Assets

An increase in a company's or individual's asset base over a specific period.

Current Liabilities

Obligations of a company due within one year, including accounts payable, short-term loans, and other similar debts.

Percentage Of Sales Method

An accounting technique used to forecast the future financial positions based on a set percentage of sales.

External Funds

Capital that comes from outside of a company, including debt financing and equity financing from external investors.