GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Net Cost
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Net assets
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Net liabilities
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Net Depreciation
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Detailed explanation-1: -Hence, Total Assets-External Liabilities=Net Worth.
Detailed explanation-2: -Total Assets = Liabilities + Owner’s Equity The equation must balance because everything the firm owns must be purchased from debt (liabilities) and capital (Owner or stockholders equity).
Detailed explanation-3: -Net assets are the value of a company’s assets minus its liabilities. It is calculated ((Total Fixed Assets + Total Current Assets) – (Total Current Liabilities + Total Long Term Liabilities)).
Detailed explanation-4: -The double-entry practice ensures that the accounting equation always remains balanced, meaning that the left side value of the equation will always match the right side value. In other words, the total amount of all assets will always equal the sum of liabilities and shareholders’ equity.
Detailed explanation-5: -Net Worth is equal to Total assets minus Total external liabilities. Net Worth is calculated by finding the difference between total liabilities and external liabilities. Total assets is same as to Total liabilities so, Net worth = Total Assets-External Liabilities which is owners fund.