Which of the following is not a proper form of the accounting equation

  • A fixed assets + current assets - liabilities = capital
  • B fixed assests + current assests + liabilities = capital
  • C fixed assets – liabilities + current assets = capital
  • D fixed asset + current asset – capital = liabilities
jamb 2015accounting

The correct answer is B. fixed assests + current assests + liabilities = capital

The simplest presentation of capital employed is total assets minus current liabilities. Sometimes, it is equal to all current equity plus interest-generating loans (non-current liabilities).

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