Which one of the following is correct? Capital is equal to assets minus liabilities
مندرجہ ذیل میں سے کون سا درست ہے؟
- Capital is equal to assets minus liabilities
- Capital is equal to assets plus liabilities
- Assets is equal to liabilities minus capital
- Liabilities is equal to capital plus assets
Explanation
In accounting, the basic equation is:
Assets = Liabilities + Capital
Rearranging this:
Capital = Assets - Liabilities
This represents the owner's equity in the business.
Correct Answer: Capital is equal to assets minus liabilities
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