Which of the following is the correct accounting equation?a. Assets + Liabilities = Equity.b. AssetsLiabilities + Equity.c. Assets + Revenues = Equity.d. Assets + Revenues = Liabilities + Expenses.

The correct accounting equation is:b. Assets = Liabilities + Equity. ExplanationThe Accounting…

Answered: Which of the following is the correct…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 3Q: How do revenues and expenses affect the accounting equation?

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Similar questions

How do revenues and expenses affect the accounting equation?
What are the effects of the following transactions on the accounting equation? Indicate an increase (+) or decrease () under the affected asset, liability, and owners equity headings.
Consider the following accounts, and determine if the account is an asset (A), a liability (L), or equity (E). A. Accounts Payable B. Cash C. Dividends D. Notes Payable
Classification of Financial Statement Items Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders equity (SE) item.
In general, how does the income statement help satisfy the objectives of financial reporting?
Identify the correct components of the income statement. A. revenues, losses, expenses, and gains B. assets, liabilities, and owners equity C. revenues, expenses, investments by owners, distributions to owners D. assets, liabilities, and dividends
The accounting equation can be expressed asa. Assets = Liabilities − Equity.b. Assets + Liabilities = Equity.c. Assets − Liabilities = Equity.d. Equity − Assets = Liabilities.
The accounting equation is expressed as ________.A. Assets + Liabilities = Owner’s EquityB. Assets – Noncurrent Assets = LiabilitiesC. Assets = Liabilities + Investments by OwnersD. Assets = Liabilities + Owner’s Equity
Which of the following is not a proper representation of the accounting equation? Equity = Assets + Liabilities Liabilities = Assets - Equity Assets = Liabilities + Equity Assets - Liabilities = Equity
Which of the following elements of financial statements is most closely related tomeasurement of financial position?a. Equityb. Revenuec. Expenses
The accounting equation may be expressed as a.Assets = Expenses - Liabilities b.Assets - Liabilities = Stockholders' Equity c.Assets = Revenues - Liabilities d.Assets + Liabilities = Stockholders' Equity
Why does a balance sheet balance (assets = Liabilities + OE)?

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Which of the following is the correct accounting equation? a. Assets + Liabilities = Equity. b. Assets Liabilities + Equity. c. Assets + Revenues = Equity. d. Assets + Revenues = Liabilities + Expenses.