Asked by Taylyn Vences on May 28, 2024
Verified
Which of the following statements is true?
A) Liabilities equal assets plus shareholders' equity.
B) Shareholders' equity equals assets plus liabilities.
C) Shareholders' equity equals liabilities minus assets.
D) Assets equal liabilities plus shareholders' equity.
E) Assets equal liabilities minus shareholders' equity.
Shareholders' Equity
represents the residual value of a company's assets minus its liabilities, indicating the value that shareholders would theoretically receive if all assets were liquidated.
- Gain insight into the functions and significance of financial statements in an organization.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
D
Explanation :
Assets equal liabilities plus shareholders' equity. This is the fundamental accounting equation, which forms the basis of the balance sheet in financial accounting.
Learning Objectives
- Gain insight into the functions and significance of financial statements in an organization.
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