Question

An alternative form of the accounting equation is:_______.

A) Net Income = Revenues − Expenses.
B) Stockholders' Equity = Assets + Liabilities.
C) Assets = Liabilities − Stockholders' Equity.

Answer 1

d. Assets - Liabilities = Stockholders' Equity.

Step-by-step explanation:

The principle of double entry booking rests upon the accounting equation. the accounting equation states that (where correct and accurate accounting books are kept), the total asset of a corporation must equal the addition of the corporation's total liabilities and Stockholders' equity.

The following is the basic formula for accounting equation

Assets = Liabilities + Stockholders' equity

Rearranging the above basic equation, we have the alternative form of the accounting equation.

Assets = Liabilities + Stockholders' equity

Subtract Stockholders' equity from both sides of the equation

Assets - Stockholders' equity = Liabilities + Stockholders' equity -

Stockholders' equity

Assets - Liabilities = Stockholders' equity