Question

In the accounting equation, assets are equal to liabilities plus what?

A Owner equity
B Revenue
C. Accounts
D. Interest
Please select the best answer from the choices provided
A
B
O O O
С
D

Answer 1

A. Owners equity

Step-by-step explanation:

In a balance sheet, the accounting equation reflects a scenario in which assets are equal to liabilities including owners equity. This is premised on the principle of double entry which is the foundation of accounting.

Owners equity is the amount owned by the business owner or his investment in the business less drawings.eg retained earnings,profits, etc.

The reason for accounting equation is to show that the balance sheet tallies such that items on the debit matches items on the credit