Question

Assets + liabilities = owner's equity is the fundamental bookkeeping equation. True False

Answer 1

Answer: The answer is FALSE.

Step-by-step explanation:  The given equation is

Assets + liabilities = owner's equity.

The given equation is FALSE. Because, the fundamental book keeping equation is defined and represented as follows:

The fundamental book keeping equation, also called the balance sheet equation, describes the relationship between the assets, liabilities, and owner's equity of a person.

The bookkeeping equation is given by

Assets = liabilities + owner's equity.

Thus, the given equation is FALSE.