Which one of the following is correct? Capital is equal to assets minus liabilities

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Which one of the following is correct? Capital is equal to assets minus liabilities Answer: Capital is equal to assets minus liabilities

The fundamental accounting equation is Capital = Assets − Liabilities, showing the owner’s equity in the business. Other options incorrectly rearrange or misstate the relationship between assets, liabilities, and capital.

Question context

This question is part of 🌍 Current Affairs within the broader 🌐 Current Affairs & GK subject and appears in the SPSC – Sindh Public Service Commission preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.