Ask Question
BusinessBusiness
27 December, 05:50

Which of the statements below is TRUE? A. Accounting Identity is: Assets equivalentLiabilities minus Owners' Equity. B. Accounting Identity is: Assets equivalent Owners' Equity minusLiabilities. C. Accounting Identity is: Assets equivalentLiabilities + Owners' Equity. D. Accounting Identity is: Liabilities equivalentAssets + Owners' Equity.

+3
Answers (1)
  1. 27 December, 08:09
    0
    C. Accounting Identity is: Assets equivalentLiabilities + Owners' Equity.

    Explanation:

    In accounting identity all variables must balance, if they do not balance according to the equation then there must be an error in formulation, measurement or calculation.

    The basic assumption in accounting identity is that the balance sheet must balance. That is assets must be equal to a sum of liabilities and owner's equity.

    Asset = Liabilities + Owners Equity.

    This relationship is based on the convention of double entry, for every debit there is an equal credit.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the statements below is TRUE? A. Accounting Identity is: Assets equivalentLiabilities minus Owners' Equity. B. Accounting Identity ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
All but one of the following is included in partnership winding up activities: a. Signing new contracts for the partnership. b. Accounting to each partner for the value of his or her interest. c. Paying debts. d. Preserving partnership assets. e.
Answers (1)
A column in the New York Times noted that during the housing boom that ended in 2006: open double quote"Global banks had loaded up on these supposedly safe securities, and were at risk of becoming insolvent when their true value became known.
Answers (1)
On May 10, Blue Spruce Corp. sold merchandise for $39,000 and accepted the customer's Best Business Bank MasterCard. At the end of the day, the Best Business Bank MasterCard receipts were deposited in the company's bank account.
Answers (1)
madison a tenant, moves from her apartment in breach of the lease agreement. The landlord, lenny, has no duty to mitigate his damages by attempting to rent the apartment true/false
Answers (1)
According to Braswell, McCarthy, and McCarthy, criminal justice ethics is shaped by all of the following except A. criminal justice. B. a personal sense of justice. C. social context. D. the U. S. Constitution.
Answers (1)
New Questions in Business
Apple has combined some of its tangible resources (such as financial resources and research laboratories) and intangible resources (such as scientists, engineers, and organizational routines) to create a capability in r&d which creates a core
Answers (1)
What factors are taken into account when valuing publicly traded stock?
Answers (1)
Gonzales Corporation generated free cash flow of $88 million this year. For the next two years, the companyʹs free cash flow is expected to grow at a rate of 10%.
Answers (1)
Panda Inc. had total sales of $24,000 from bamboo bowls in 2017. The company sold 6,000 units of bamboo bowls and the total variable costs were $6,000. What is the %C of each bamboo bowl?
Answers (1)
Suppose a salesperson tells you that one of his/her goals is to increase sales by the end of the month. Which of the following is probably your best response if the salesperson asked you for feedback related to the S. M. A. R. T. goal setting? a.
Answers (1)
Home » Business » Which of the statements below is TRUE? A. Accounting Identity is: Assets equivalentLiabilities minus Owners' Equity. B. Accounting Identity is: Assets equivalent Owners' Equity minusLiabilities. C.
Sign Up Forgot Password?