Which of the Following Equations Is Equivalent to the Accounting

question 35

Multiple Choice

Which of the following equations is equivalent to the accounting equation?

• A) Equity = liabilities - assets
• B) Owners' equity = assets - liabilities
• C) Revenues - expenses = net income
• D) Net income = expenses - revenues + taxes
• E) Profit = sales - revenues

---

Definitions:

States

Politically organized territories with defined geographic boundaries, governed by a set of laws under a sovereign government.

First Amendment

An amendment to the U.S. Constitution that guarantees freedoms concerning religion, expression, assembly, and the right to petition the government.

Freedom Of Speech

A fundamental right guaranteed by the First Amendment to the U.S. Constitution, allowing individuals the liberty to express ideas and opinions without government restraint.

Supreme Court

The highest judicial body in a country, often having the final authority on constitutional matters.