Question

The basic accounting equation is: _________ (4.) = ___________ (5.) + _______ (6.)

4. A. assets B. liabilities C. owner’s equity
5. A. liabilities B. owner’s equity C. assets
6. A. owner’s equity B. assets C. liabilities

Answer 1

4) Assets - Are important and can be anything valuable, that benefits you and your business.

5) Liabilities - Are the sum of money that is owed, and this is obviously not a good thing for you.

6) Owner's Equity - Is the money that you would actually have as a result of paying off all debts and converting all assets into spendable cash.

I gave my own take on what each are in order to explain them to you. Hope this makes sense :)