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    5. Which accounting equation forms the basis of the balance sheet?

    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.

    Practice Next
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    Relevant for Exams:

    • UPSC EPFO (APFC)
    • UPSC

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