ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Review each and every asset account, liability account and owner’s equity account posted in the balance sheet. The difference between the total assets and total liabilities plus owner’s equity will be the missing figure.

Detailed explanation-2: -Fundamentally, accounting comes down to a simple equation. Assets = Liabilities + Equity.

Detailed explanation-3: -This figure is calculated by subtracting total liabilities from total assets; alternatively, it can be calculated by taking the sum of share capital and retained earnings, less treasury stock. This metric is frequently used by analysts and investors to determine a company’s general financial health.

Detailed explanation-4: -The equation goes as follows: Assets = Liabilities + Capital. Was this answer helpful?