Question

what is the accounting equation? 1.capital=asset - liability 2.asset=capital+liability 3.liability=asset -capital 4.all of above 5.none of above 6.only 1&2

Answer 1

Meaning of accounting equation

Accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a business.

It is the foundation for the double-entry bookkeeping system.

For each transaction, the total debits equal the total credits

Accounting equation

Asset = capital + liabilities  - general equation

         or

capital = asset - liabilities

            or

liabilities = asset - capital

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From the above equation its clear that option 4 is correct

All the above is the correct answer

Answer 2

Answer:

hey here is you answer

capital = assets - liabilities