Which of the following accounting equation is correct?
A
Cash + Other assets = Capital - Liabilities
B
Capital + Liabilities = Assets + Income
C
Assets - Liabilities = Capital
D
Assets + Capital = Liabilities
Correct Answer: Assets - Liabilities = Capital
Assets - Liabilities = Capital is correct.The Accounting Equation states that the Assets are always equal to the sum of Capital & Liabilities.