Commerce Exam > Commerce Questions > Which one is the correct statement (a) assets...
Start Learning for Free
Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets?
Most Upvoted Answer
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
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets?
Question Description
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?.
Solutions for Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets? defined & explained in the simplest way possible. Besides giving the explanation of
Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets?, a detailed solution for Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets? has been provided alongside types of Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets? theory, EduRev gives you an
ample number of questions to practice Which one is the correct statement (a) assets =capital - liabilities (b) assets =capital liabilities (c) capital =assets liabilities (d) liabilities =capital assets? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup