Sign up  |  Log in

Equation BalanceSheet

Hi guys. Financial Reporting Mechanics LOS 22 has Concept Checkers, where in 4 question is asking - The accounting equation is least accurately stated as: A. owners equity=liabilities-assets. And that is correct answer. Tell me please, how can it be? Real formula: Assets=Owners equity+Liabilities (5=2+3). That means Owner equity=Asstes-Liabilities (2=5-3). But in this case 2=3-5 (2=-2). Thanks for answers.

"Using Wiley for my CFA journey was by far the best option… I was able to pass on my first attempt.”– Moe E., Canada

It is clearly E= A - L .

Check errata, if not, report it directly to the CFAI.

~ The best is yet come ~

OK, thx.

before you report === ask yourself to read the question slowly …

equation is least accurately stated as

so they want the wrong answer … which the above is …

CP

I see…) U r right cpk123. Thanks.