Multiple choice

The Accounting Equation connected with

  1. Asset Only

  2. Liabilty only

  3. Capital Only

  4. All the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The fundamental accounting equation (Assets = Liabilities + Capital) connects all three elements - assets, liabilities, and owner's equity/capital. Every transaction affects at least two of these components, maintaining the equation's balance.