Question

The accounting equation can be stated as:

a. A + L − SE = 0.
b. A − L − SE = 0.
c. −A + L − SE = 0.
d. A − L + SE = 0.

Answer 1

The accounting equation can be stated as: d. A − L + SE = 0. The accounting equation is the foundation of double-entry bookkeeping and represents the relationship between a company's assets, liabilities, and shareholders' equity. It is often expressed as A = L + SE.

Step-by-step explanation:

The accounting equation can be stated as: d. A − L + SE = 0.

The accounting equation is the foundation of double-entry bookkeeping and represents the relationship between a company's assets, liabilities, and shareholders' equity. It is often expressed as A = L + SE, where A represents assets, L represents liabilities, and SE represents shareholders' equity.

In this equation, assets are equal to the sum of liabilities and shareholders' equity. This equation must always remain in balance and serves as a fundamental principle in accounting.