Point out the correct accounting equation ........

Principles of Accounting & Financial Management Concepts of Accounting

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Point out the correct accounting equation:

Assets = Liabilities – Capital

Liabilities = Capital + Assets

Capital = Assets + Liabilities

Liabilities = Assets – Capital

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Explanation:

The accounting equation is considered to be the foundation of the double-entry accounting system. On a company's balance sheet, it shows that a company's total assets are equal to the sum of the company's liabilities and shareholders' equity.

Based on this double-entry system, the accounting equation ensures that the balance sheet remains “balanced,” and each entry made on the debit side should have a corresponding entry (or coverage) on the credit side.