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Which of the following statements is TRUE? Assets = Liabilities - Capital, Assets = Capital + Liabilities,Capital = Assets - Liabilities, None of these
مندرجہ ذیل میں سے کون سا بیان سچ ہے؟
  1. Assets = Liabilities - Capital
  2. Assets = Capital + Liabilities
  3. Capital = Assets - Liabilities
  4. None of these
Explanation
  • Assets = Capital + Liabilities equation represents the Accounting Equation, which states that a company's assets are financed by either owners' equity (capital) or liabilities.

  • It ensures the financial position remains balanced, forming the foundation of double-entry bookkeeping.

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