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      Question

      Which accounting equation forms the basis of the balance

      sheet?
      A Assets = Liabilities - Equity Correct Answer Incorrect Answer
      B Assets + Liabilities = Equity Correct Answer Incorrect Answer
      C Assets = Liabilities + Equity Correct Answer Incorrect Answer
      D Assets - Liabilities = Equity Correct Answer Incorrect Answer

      Solution

      Assets = Liabilities + Equity forms the basis of the balance sheet.

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