1) What is the accounting equation? a) What is the accounting equation? b) Assets - Liabilities = Expenses c) Assets=Liabilities + Equity d) Equity + Liabilities = Revenue 2) Which of the following is NOT a component of the accounting equation? a) A) Assets b) B) Expenses c) C) Liabilities d) D) Equity 3) The accounting equation always remains balanced, regardless of the transaction. (True/False) a) True b) False 4) Assets are always equal to liabilities in a healthy business. (True/False) a) True b) False

Basic accounting Equation

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