Question

Which of the following is a correct statement of the accounting equation in economic terms?A. Economic resources = creditor financing – owner financingB. Economic resources = operating assets + financial assetsC. Creditor financing = investing + operatingD. Economic resources = creditor financing + owner financing

Answer 1

Answer:

D. Economic resources = creditor financing + owner financing

Explanation:

The economic resources in accounting are:

• the liablities; which represent the loans and credit term made by third parties (creditor financing)
• and equity which represent both, the actual nvestment and the retained earnings(owner financing)

Both, are used to obtain an maintain the assets which arethe economic use of the resources.