The correct expression of accounting equation is
FINANCIAL
JAMB 2017
The correct expression of accounting equation is
- A. Assets = Liabilities + Equity
- B. Net assets = Liabilities + Equity
- C. Assets + Liabilities = Equity
- D. Assets = Equity - liabilities
Correct Answer: A. Assets = Liabilities + Equity
Explanation
The fundamental accounting equation is Asset = Capital + Liabilities. Asset = Liabilities + Equity the total assets of the company is generated through liabilities to outsiders that the company is still enjoying in addition with the equity by the owners of the business
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