What is the accounting equation?
- A Assets = Liabilities + Owner's Equity
- B Assets = Liabilities - Owner's Equity
- C Assets + Liabilities = Owner's Equity
- D Assets + Owner's Equity = Liabilities
Answer
Assets = Liabilities + Owner's Equity
Every transaction keeps this equation in balance. Assets are funded either by borrowing (liabilities) or by owners (equity), which is the basis of double-entry bookkeeping.





