In the Context of Balance Sheets, the Accounting Equation Tells

Multiple Choice

In the context of balance sheets, the accounting equation tells us that the value of a firm's assets must be:

A) greater than the amount of financing provided by owners plus the amount provided by creditors to purchase those assets.
B) equal to the amount of financing provided by owners plus the amount provided by creditors to purchase those assets.
C) negligible when compared to the amount of financing provided by owners plus the amount provided by creditors to purchase those assets.
D) less than the amount of financing provided by owners plus the amount provided by creditors to purchase those assets.