The Correct Version of the Accounting Equation Is

question 30

Multiple Choice

The correct version of the accounting equation is:

• A) liabilities = assets + equity.
• B) equity = assets + liabilities.
• C) assets = equity + liabilities.
• D) none of the above.

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Definitions:

Price

The amount of money expected, required, or given in payment for something.

Payment

The transfer of money, goods, or services in exchange for a product, service, or to satisfy an obligation.

Fixture

A fixture is an item that was originally personal property but has been attached to real property in such a way that it is legally considered a part of the real property.

UCC

Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, including sales, banking, and leases.