Asked by ZAHRAH JAHANGIR on Jul 08, 2024
Verified
The difference between a company's assets and its liabilities,or net assets is:
A) Net income.
B) Expense.
C) Equity.
D) Revenue.
E) Net loss.
Net Assets
The total assets of a company minus all of its liabilities, representing the owners' equity.
Liabilities
Obligations of a company or organization due to past transactions or events, resulting in the future sacrifice of economic benefits.
- Understand the attributes and taxonomy of assets, liabilities, and equity.
Verified Answer
KS
Kelby SmithJul 13, 2024
Final Answer :
C
Explanation :
The difference between a company's assets and liabilities is known as equity. This represents the residual value of the company that would be left over if all its liabilities were paid off.
Learning Objectives
- Understand the attributes and taxonomy of assets, liabilities, and equity.