Which of the following expresses the accounting equation?
Answer Details
The expression that expresses the fundamental accounting equation is:
Assets - liabilities = Capital
This equation is the foundation of double-entry accounting and reflects the fundamental principle that a company's assets must be equal to the sum of its liabilities and capital. It means that the total value of the assets owned by a company must be equal to the sum of the amount owed to its creditors and the amount invested by its owners or shareholders. If this equation is not in balance, it may indicate errors in accounting records or problems with the company's financial position.