Identify the correct form of the fundamental accounting equation from the options below.

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Cash plus non-cash assets equals capital minus liabilitiesCapital added to liabilities equals assets plus revenueAssets minus liabilities is equal to owner's equityAssets combined with capital equals total liabilitiesNone of the above

Explanation

The basic accounting equation states that owner's equity (capital) is the difference between total assets and total liabilities. Therefore, the correct expression is: Assets - Liabilities = Capital (Owner's Equity). Other options either misrepresent the relationship or include incorrect terms such as income or combine terms incorrectly.