Which of the following equation is true for balance sheet

इंडियन गवर्नमेंट एग्जाम प्रेप

A Assets = Liabilities + Capital

B Liabilities = Assets + Capital

C Capital = Assets + Liabilities

D All of these

Correct Answer: A

Solution & Explanation

The balance sheet displays the company’s total assets, and how these assets are financed, through either debt or equity. It can also be referred to as a statement of net worth, or a statement of financial position. The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity(Capital).

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