What is the fundamental accounting equation

date：2026-03-29 16:10:37 author：admin browse： time View comments Add Collection

What is the fundamental accounting equation

What is the fundamental accounting equation?

A. Assets = Liabilities - Equity

B. Assets = Liabilities + Equity

C. Assets + Liabilities = Equity

D. Equity = Assets + Liabilities

Answer: B

Explanation: The core accounting equation states that total assets of a business are equal to the sum of its external liabilities and owner’s equity.