Asked by Micaiah Farmer on May 12, 2024

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Stockholders' equity is

A) added to assets and the two are equal to liabilities
B) added to liabilities and the two are equal to assets
C) subtracted from liabilities and the net amount is equal to assets
D) equal to the total of assets and liabilities

Stockholders' Equity

The portion of the balance sheet that represents the capital received from investors in exchange for stock, plus retained earnings.

Assets

Resources owned or controlled by a business or individual that are expected to produce future economic benefits.

Liabilities

Liabilities represent the obligations or debts that a company owes to others, which must be settled through the transfer of economic benefits like cash or goods.

  • Assess the overall value of assets, liabilities, and equity attributable to shareholders by analyzing an adjusted trial balance.
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SL
Shelley LutovMay 13, 2024
Final Answer :
B
Explanation :
Stockholders' equity, when added to liabilities, equals the total assets of a company, according to the accounting equation: Assets = Liabilities + Stockholders' Equity.