Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 1 - No. 15)

What is the relationship between assets, liabilities, and owner's equity?

Assets = Liabilities - Owner's Equity

Assets = Liabilities + Owner's Equity

Assets = Owner's Equity - Liabilities

Liabilities = Assets + Owner's Equity

The accounting equation is: Assets = Liabilities + Owner's Equity.