In the accounting equation, total assets are equal to:
Correct answer: B. Liabilities plus owner's equity
- A. Liabilities minus owner's equity
- B. Liabilities plus owner's equity
- C. Revenue plus drawings
- D. Expenses plus owner's equity
Explanation
The basic accounting equation is Assets = Liabilities + Owner's Equity. Liabilities represent claims by outsiders, while equity represents the owner's residual claim.
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Business finance covers capital requirements, sources of funds, budgeting, cash flow, investment decisions and basic financial statements and ratios. Banking includes commercial bank functions, deposits, loans, credit creation, interest and the role of a central bank, including its monetary policy and regulatory functions.
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