The equation which shows a company's resources equal claims to these resources is
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 12CDQ
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Question
The language of business embeds many equations. The equation which shows a company's resources equal claims to these resources is:
A. Revenues - expenses = net income
B. Assets = liabilities + stockholders' equity
C. Cash increases - cash decreases= change in cash
D. Common stock + retained earnings = stockholders' equity
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