Which of the Following Calculations Is a Formal Expression of the Accounting

question 109

Multiple Choice

Which of the following calculations is a formal expression of the accounting equation?

• A) assets - owners' equity = liabilities
• B) assets = liabilities + owners' equity
• C) assets + liabilities = retained earnings
• D) assets + liabilities = owners' equity

---

Definitions:

Drawer's Account

In financial terms, the account belonging to the person who writes a check or draft instructing a bank to pay a designated amount of money.

Honor The Check

The act of a bank or financial institution completing the transaction by paying the amount specified on a check from the payer's account to the payee or holder.

Account Aggregation

A financial service that compiles information from various accounts, belonging to an individual or entity, into a single platform for easier management and analysis.

Financial Management

The strategic planning, organizing, directing, and controlling of financial undertakings in an organization or an institution; it also includes applying management principles to the financial assets of an organization.