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Which statement best explains Accounting equation?

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Question ID #25860 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Correct Answer: C. Assets = Liabilities + Equity
Accounting equation: Assets = Liabilities + Equity

Question: Which statement best explains Accounting equation?

A. Depreciation method applying a rate to the carrying amount of an asset

B. Expense incurred but not yet paid

C. Assets = Liabilities + Equity

D. Depreciation method charging an equal amount each year, subject to residual value

Correct Answer: C. Assets = Liabilities + EquityAccounting equation: Assets = Liabilities + Equity

Which statement best explains Accounting equation? - MCQ Explanation

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Correct answer: C. Assets = Liabilities + Equity