Final answer:
The basic accounting equation liabilities + owner's equity = assets is best described by the term balance sheet.
Step-by-step explanation:
The basic accounting equation liabilities + owner's equity = assets is best described by the term balance sheet. A balance sheet is a financial statement that shows a company's assets (what it owns), liabilities (what it owes), and owner's equity (the residual interest in the assets after deducting liabilities). By maintaining a balance between assets and liabilities, the balance sheet provides a snapshot of a company's financial health at a specific point in time.