Question

Which of the following is not correct accounting equation?

a. Assets = Capital + Liabilities

b. Capital = Assets – Liabilities

c. Capital = Assets + Liabilities

d. Liabilities = Assets – Capital​

Answer 1

Explanation:

Capital = Assets + Liabiliti

Answer 2

c. Capital = Assets + Liabilities is the incorrect equation.

1. Capital is defined as the value invested by owners in the buisness. The capital belongs to the owner and is also known as owner's interest.
2. Liability is a type of loan or in other words amount owed by company. It is written under account payable.
3. Asset is resource owned by company and is used by them to produce value.