Expand the left-hand side of the given equation: \[ (A + B)^2 = A^2 + AB + BA + B^2. \]
Equating both sides: \[ A^2 + AB + BA + B^2 = A^2 + B^2. \]
Cancel \( A^2 \) and \( B^2 \): \[ AB + BA = 0. \]
Rearranging: \[ AB = -BA. \]
Therefore, the correct answer is (B) \( AB = -BA \).