BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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owners equity-liabilities
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owners equity + liabilities
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owners equity-depreciation
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liabilities-Profit
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Detailed explanation-1: -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-2: -Assets are the total of your cash, the items that you have purchased, and any money that your customers owe you. Liabilities are the total amount of money that you owe to creditors. Owner’s equity, net worth, or capital is the total value of assets that you own minus your total liabilities.
Detailed explanation-3: -Assets = Liabilities + Shareholder’s Equity When you add your total liabilities and total equity, the result should equal your total assets.
Detailed explanation-4: -Assets = Liabilities + Shareholders’ Equity.
Detailed explanation-5: -Assets = Liabilities + Shareholder’s Equity According to the equation, a company pays for what it owns (assets) by borrowing money as a service (liabilities) or taking from the shareholders or investors (equity).