JAMB - Accounts Principles Of Accounts (2017 - No. 44)
The correct expression of accounting equation is
Assets = Liabilities + Equity
Net assets = Liabilities + Equity
Assets + Liabilities = Equity
Assets = Equity - liabilities
Explanation
The fundamental accounting equation is Asset = Capital + Liabilities
Asset = Liabilities + Equity the total assets of the company is generated through liabilities to outsiders that the company is still enjoying in addition with the equity by the owners of the business
Asset = Liabilities + Equity the total assets of the company is generated through liabilities to outsiders that the company is still enjoying in addition with the equity by the owners of the business
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