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Which of the following equations properly represents a derivation of the fundamental accounting equation?

 

• Assets + liabilities = owner's equity

 

• Assets = owner's equity

 

• Cash = assets

 

• Assets - liabilities = owner's equity

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Question added by Shazia Anees , Assistant Manager Finance , Arham Trading Company
Date Posted: 2015/05/25
Abbas  Bharmal CA Inter M com Looking for New
by Abbas Bharmal CA Inter M com Looking for New , Senior Accountant , Msheireb Properties

Assets- Liabilities= Owners Capital

(Assume that Assets are total assets (FA+CA) and total Liabilities (Long term+Short term+Current Liabilities) 

Asad Ahmed
by Asad Ahmed , Manager Finance & Company Secretary , Connect Communications Pvt. Ltd.

The fundamental accounting equation is

Assets - liabilities = owner's equity

Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Assets - liabilities = owner's equity

Sara Naeem
by Sara Naeem , Trainee Finance officer , Wah Brass Mill

the correct one is  Asset - liabilities = Owner's equity which already given by all professionals.

PRADEEP VELAYUDHAN
by PRADEEP VELAYUDHAN , Chief Accountant , Super Group

assets-liabilities = owner's equity-------------------------

Assets-Liabilities = shareholders

sameer chogule
by sameer chogule , Senior Accountant , Robusta coffee Company

assets = liabilities + O.E

assets - liabilities =Owners equity 

Lynne Alexander
by Lynne Alexander , Financial Controller , Arlo Insurance Brokers LLC

Assets less liabilities will equal owner's equity, A = E+L

Haidar Alali
by Haidar Alali , GL Accountant , National OilWell Varco NOV

The last option is the correct answer,  A - L= OE.

Paolo Borchetta
by Paolo Borchetta , Managing Director , NIMM International Mauritanie Mining

Assets-Liabilities = shareholders or owners equity

Muhammad Ramzan Tufail  ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Assets - Liabilities = Owner's Equity

 

Thank you....

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