Select all that applyWhich three components make up the fundamental accounting equation?Multiple select question.liabilitiesassetsowners' equityincomeexpenses

Breakdown the Problem

1. Identify the fundamental accounting equation: The fundamental accounting equation is a foundational principle in accounting that shows the relationship between a company's assets, liabilities, and owners' equity.
2. Consider the components provided: Evaluate each term to determine if it’s a component of the accounting equation.

Relevant Concepts

1. Fundamental Accounting Equation: The equation is given by: $\text{Assets} = \text{Liabilities} + \text{Owners' Equity}$

Analysis and Detail

1. Assets: These are resources owned by a business that have economic value.
2. Liabilities: These represent the obligations or debts that a business owes to external parties.
3. Owners' Equity: This is the residual interest in the assets of the entity after deducting liabilities, also known as net assets.

The terms "income" and "expenses" are not direct components of the accounting equation itself, but rather affect the owner's equity through the profit and loss process.

Verify and Summarize

1. The components that are part of the fundamental accounting equation are Assets, Liabilities, and Owners' Equity.
2. Income and expenses are related to the performance of the business but do not form part of the equation itself.

Final Answer

The three components that make up the fundamental accounting equation are:

• Assets
• Liabilities
• Owners' Equity