WAEC Accounting 2020 Paper

Concept:The accounting equation shows how a business's assets are funded by liabilities and owner's equity.Explanation:The accounting equation is written as:$$\text{Assets} = \text{Liabilities} + \text{Owner's Equity}$$Liabilities represent amounts owed to outsiders.Owner's equity represents the owner's claim on the business.These two together are the sources of financing for the assets.Therefore, the equation gives both the assets and the sources that finance them.It is not limited to current items, and it does not show only the owner's interest.Answer:C. assets and the sources of financing them