JAMB Accounts Principles of Accounts 2015 Paper

Concept:The accounting equation states that assets equal the sum of capital and liabilities, i.e. $\text{Assets} = \text{Capital} + \text{Liabilities}$.Explanation:From $\text{Assets} = \text{Capital} + \text{Liabilities}$, we can rearrange it correctly in these ways.$\text{Assets} - \text{Liabilities} = \text{Capital}$$\text{Assets} - \text{Capital} = \text{Liabilities}$So, $\text{Fixed Assets} + \text{Current Assets} - \text{Liabilities} = \text{Capital}$ is correct.Also, $\text{Fixed Assets} + \text{Current Assets} - \text{Capital} = \text{Liabilities}$ is correct.But option B says $\text{Fixed Assets} + \text{Current Assets} + \text{Liabilities} = \text{Capital}$.This means $\text{Assets} + \text{Liabilities} = \text{Capital}$, which is not a proper form of the accounting equation.Answer:B. fixed assets + current assets + liabilities = capital