Richard Samonski Does Not Understand the Significance of the Accounting

Multiple Choice

Richard Samonski does not understand the significance of the accounting equation.You explain its importance in the simplest way by saying that:

A) as a result of each transaction, the total assets should equal the total liabilities plus owners' equity.
B) as a result of most of the transactions, assets and liabilities are equal.
C) owners' equity is not as important as assets and liabilities.
D) it is just an exercise in accounting.
E) as a result of each transaction, total liabilities should equal total assets plus owners' equity.