The Basic Accounting Equation May Be Expressed as

question 129

Multiple Choice

The basic accounting equation may be expressed as

• A)Assets = Equities.
• B)Assets - Liabilities = Equity.
• C)Assets = Liabilities + Equity.
• D)all of these.

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Definitions:

Accumulated Depreciation

The cumulative amount of depreciation cost recorded for an asset from the time it was first utilized.

Fixed Asset Account

An account that tracks the purchase, depreciation, and disposal of long-term assets used in the production of goods or services.

Book Value

The net value of a company's assets minus its liabilities, as reported on the balance sheet, often used to assess a company's worth.

Balance Sheet

A report that outlines the assets, liabilities, and owners' equity of a business at a certain moment, offering an overview of its financial health.