Which of the following accounting equations is the correct one?
Select ONE answer:
- Asset + Capital = Liabilities
- Liabilities – Capital = Assets
- Capital = Assets + Liabilities
- Capital = Assets – Liabilities
Show your workings to arrive at your answer, and explain and justify your reasons:
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This is multiple choice question is suitable for Accounting KS5 classes.
The answer is 4 – This is as per the accounting equation.
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