which of the following is equal to liabilities + shareholders equity? revenue assets net income
which of the following is equal to liabilities + shareholders equity? revenue assets net income
Answer
Brief Explanations:
The accounting equation states that Assets = Liabilities + Shareholder's Equity. This is a fundamental principle in accounting. Revenue is related to income statement items (e.g., Revenue - Expenses = Net Income), and Net Income is part of the income - statement result which eventually affects Shareholder's Equity (through retained earnings). But the direct equality to Liabilities + Shareholder's Equity is Assets.
Answer:
Assets