Which of the Following Statements Is the Rationale for the Accounting

Multiple Choice

Which of the following statements is the rationale for the accounting equation?

A) The value of the firm's assets must equal the total amount of financing used to purchase assets.
B) A firm's financial worth is calculated by subtracting the assets from shareholder equity.
C) The firm can calculate its profit margin by subtracting expenses and liabilities from revenue.
D) The value of a firm's assets must always be greater than the total amount of financing to purchase those assets.