Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 20 - No. 14)
What accounting equation is the foundation of the balance sheet?
Assets = Liabilities - Equity
Assets + Liabilities = Equity
Assets = Liabilities + Equity
Assets - Liabilities = Equity
Explanation
The fundamental accounting equation is Assets = Liabilities + Equity, and the balance sheet reflects this.
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