Business FinancesQuestion 292 of 1605
The fundamental accounting equation expressed on a balance sheet is:
a.Revenue − Expenses = Profit
b.Assets + Liabilities = Equity
c.Assets = Liabilities + Owner's Equity
d.Assets − Equity = Revenue
Explanation
The balance sheet always balances because Assets = Liabilities + Owner's Equity. Equity equals what remains for the owner after liabilities are subtracted from assets.
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