Which of the Following Is the Correct Accounting Equation

question 14

Multiple Choice

Which of the following is the correct accounting equation?

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

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Definitions:

Accounting Records

Documentation and information that capture all the financial transactions of a business or an individual.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenue and expenses to the appropriate periods.