Question

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accounting equation:
select one:
a. cash = profit
b. assets = liabilities + equity
c. assets = revenue - expense
d. equity = assets - liabilities - revenue

Explanation:

The accounting equation is a fundamental principle in accounting. It states that a company's total assets are equal to the sum of its liabilities and equity. Option a is incorrect as cash and profit are not equivalent. Option c is wrong because assets are not calculated as revenue minus expense (that relates to profit calculation). Option d has an incorrect formula for equity; the correct relation from the accounting equation is Equity = Assets - Liabilities (without subtracting revenue). So the correct option is b.

Answer:

b. Assets = Liabilities + Equity