Revenue = Expenses
Capital + Profits = Assets + Expenses
Capital + Liabilities = Assets
Capital + Drawings - Owner's Equity
Answer is Right!
Answer is Wrong!
The correct answer is C. Capital + Liabilities = Assets.
The dual aspect concept is the idea that every financial transaction has two aspects: a debit and a credit. This means that for every transaction, there is an increase in one account and a decrease in another account. The accounting equation is a representation of the dual aspect concept. It states that the total assets of a company must equal the total liabilities and owner’s equity of the company.
Option A is incorrect because it does not include liabilities. Option B is incorrect because it does not include assets. Option D is incorrect because it does not include owner’s equity.