Which of the Following Represents the Accounting Equation

question 62

Multiple Choice

Which of the following represents the accounting equation?

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

---

Definitions:

Costs and Benefits

An analysis or evaluation framework, often used in economics and business, that compares the advantages and disadvantages or gains and costs of a certain action.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Macroeconomics

The part of economics concerned with the performance and behavior of the economy as a whole. Focuses on economic growth, the business cycle, interest rates, inflation, and the behavior of major economic aggregates such as the household, business, and government sectors.

Entire Economy

The entire economy refers to the sum total of all economic activities and interactions within a country or region.