WAEC Accounting 2017 Paper

Concept:The balance sheet equation shows how every asset is financed by either liabilities or owner's equity.Explanation:The balance sheet equation is written as:$$\text{Assets} = \text{Liabilities} + \text{Owner's Equity}$$This equation means total assets are matched by two sources of financing: external claims (liabilities) and internal claims (owner's equity).Therefore, the equation links what the business owns (assets) with the sources used to pay for them.Answer:C. assets and sources of financing them