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QuizMultiple Choice

Study Guide and Quiz

Question 1 • S25 Introduction to Business A (Theisen)

In the accounting equation, assets are equal to which two things?

Answer
A
Debits + equity
B
Debits + accounts
C
Liabilities + equity
D
Liabilities + accounts

Explanation

The accounting equation is Assets = Liabilities + Equity. Liabilities are what a business owes, and equity is the owners’ claim on the business’s assets. Therefore, the correct choice is “Liabilities + equity.”

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