Which of the Following Is the Correct Accounting Equation

question 156

Multiple Choice

Which of the following is the correct accounting equation?

• A)Assets = Liabilities + Stockholders' Equity
• B)Assets + Stockholders' Equity = Liabilities
• C)Assets = Liabilities - Stockholders' Equity
• D)Assets + Liabilities = Stockholders' Equity

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Definitions:

Condensed Income Statements

A simplified version of an income statement that presents only the most essential information, typically revenue, expenses, and net income, over a specific period.

Private Enterprises

Businesses that are privately owned and operated, and not publicly traded on stock exchanges.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

US GAAP

The Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting.