Advertisements
Advertisements
Question
Assertion (A): The accounting equation is Assets = Liabilities + Capital.
Reasoning (R): This equation represents the fundamental relationship between a company’s resources, debts, and ownership.
Options
A is true but R is false.
A is false but R is true.
Both A and R are true and R explains A.
Both A and R are true but R does not explain A.
MCQ
Advertisements
Solution
Both A and R are true and R explains A.
Explanation:
The accounting equation Assets = Liabilities + Capital is correct, and the reasoning correctly explains it as the fundamental relationship between a company’s resources, debts, and ownership.
shaalaa.com
Is there an error in this question or solution?
