4
QuizMultiple Choice

Final Test

Question 4 • Introduction to Business A

In the accounting equation, assets are equal to which two things?

Answer
A
Debits + equity
B
Debits + accounts
C
Liabilities + equity
D
Liabilities + accounts

Explanation

The accounting equation is Assets = Liabilities + Equity. Liabilities are what a business owes, and equity is the owners’ claim on the business’s assets. Therefore, the correct choice is “Liabilities + equity.”

AI-written and checked against the verified answer.

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