What is the fundamental balance sheet equation? A. Assets = Stockholders' Equity - Liabilities (A = E - L). B. Assets = Liabilities + Stockholders' Equity (A = L + E). C. Liabilities = Assets + Stockholders' Equity (L = A + E).
The fundamental balance sheet equation is Assets = Liabilities + Stockholders’ Equity (A = L + E). This is the fundamental accounting relationship that sets the basis for recording all financial transactions.
