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Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets?
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Which one is the correct statement (a) assets =capital - liabilities (...
Statement and Explanation:
The correct statement is (a) assets = capital - liabilities.
Explanation:
Assets, capital, and liabilities are the three main elements of the accounting equation. The accounting equation states that the total assets of a company must be equal to the sum of its liabilities and capital. This equation is fundamental to the accounting system, as it helps to ensure that financial statements are accurate and complete.
The equation can be expressed in different ways, depending on which element is being calculated. The following are the different forms of the accounting equation:
- Assets = Liabilities + Capital
- Liabilities = Assets - Capital
- Capital = Assets - Liabilities
However, the correct statement is assets = capital - liabilities. This form of the equation is commonly used in financial statements and accounting reports. It shows how much of a company's assets are financed by its capital, after subtracting its liabilities.
Conclusion:
In conclusion, the correct statement of the accounting equation is assets = capital - liabilities. This equation is essential to understanding a company's financial position and is used to prepare financial statements and accounting reports.
The correct statement is (a) assets = capital - liabilities.
Explanation:
Assets, capital, and liabilities are the three main elements of the accounting equation. The accounting equation states that the total assets of a company must be equal to the sum of its liabilities and capital. This equation is fundamental to the accounting system, as it helps to ensure that financial statements are accurate and complete.
The equation can be expressed in different ways, depending on which element is being calculated. The following are the different forms of the accounting equation:
- Assets = Liabilities + Capital
- Liabilities = Assets - Capital
- Capital = Assets - Liabilities
However, the correct statement is assets = capital - liabilities. This form of the equation is commonly used in financial statements and accounting reports. It shows how much of a company's assets are financed by its capital, after subtracting its liabilities.
Conclusion:
In conclusion, the correct statement of the accounting equation is assets = capital - liabilities. This equation is essential to understanding a company's financial position and is used to prepare financial statements and accounting reports.
Community Answer
Which one is the correct statement (a) assets =capital - liabilities (...
Assets=capital+liability
capital=assets-liability
liability=assets-capital
these all are correct formula
capital=assets-liability
liability=assets-capital
these all are correct formula
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Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets?
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Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets?.
Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets?.
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