The amount by which assets exceeds liabilities - 190 - JAMB Accounting 2024 Question
The amount by which assets exceeds liabilities is
A
capital
B
premium
C
bonus
D
provision
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Correct Option: A
The accounting equation is: Assets = Liabilities + Owner's Equity. Owner's Equity is the claim of the owners on the assets of the business. It is also known as capital. Capital is calculated by subtracting liabilities from assets. Therefore, the amount by which assets exceed liabilities represents capital.
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