BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$180, 000
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$110, 000
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$80, 000
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$30, 000
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Detailed explanation-1: -Assets = Liabilities + Shareholder’s Equity When you add your total liabilities and total equity, the result should equal your total assets.
Detailed explanation-2: -Total Assets = Current Assets + Noncurrent Assets The total assets can be found in a financial statement called the balance sheet. In basic accounting, total assets are also equal to total liabilities and total stockholder’s equity.
Detailed explanation-3: -Assets are everything your business owns. Liabilities and equity are what your business owes to third parties and owners. To balance your books, the golden rule in accounting is that assets equal liabilities plus equity.
Detailed explanation-4: -The balance sheet displays the company’s total assets and how the assets are financed, either through either debt or equity. It can also be referred to as a statement of net worth or a statement of financial position. The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity.