5 value: 15.00 points The accounting equation can be stated as: Assets + Liabilities Stockholders' equity...

Question

Question

Answer 1

Answer #1

Answer

Accounting equation can be stated as
Assets = Liabilities + Equity.
If you look at Option #2, the equation is derivation of above mentioned equation.
Assets = Liabilities + Stockholder’s Equity,
Hence, Assets – Liabilities = Stockholder’s Equity.
--When ‘Liabilities’ is moved from right side to left side, the positive will become negative.
Hence, correct answer = Option #2: Assets – Liabilities = Stockholder’s Equity.

Answer 2

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