Question

What is the basic equation of an income statement? Select one: a. Assets = Revenues – Expenses b. Net income or loss = Revenues – Expenses c. Assets = Liabilities + Equity d. Equity = Cash inflows – Cash outflows

Answer 1

c. Assets = Liabilities + Equity

Step-by-step explanation:

Assets = Liabilities + shareholders equity is also known as the balance sheet equation.

It is the basis for the double-entry bookkeeping system