Why total assets equal the sum of total liabilities & equity, Financial Management

Assignment Help:

Why do total assets equal the sum of total liabilities and equity?Explain.

Assets = Liabilities + Equity

Assets are the entities of value a business owns. Liabilities are liable claims on the business by non-owners and equities are the owners' claim on the business. The sum of the equity and liabilities is the total capital contributed to the business which by definition equals the total value of the assets.

Related Discussions:- Why total assets equal the sum of total liabilities & equity

PROFIT MAXIMIZATION, what are the arguments in favour of profit maximizat...

what are the arguments in favour of profit maximization?

Multi-period compounding or else future value, Multi-period Compounding or ...

Multi-period Compounding or else Future Value :- If the company determination compounding interest half-yearly (semi-annually) instead of annually then investors will gain as he wi

Agency debentures, These debentures are backed by integrity and credi...

These debentures are backed by integrity and creditworthiness. They do not have any specific collateral backing. Therefore, the ability of the issuing GSE to gene

Capital budgeting, #how to calculate initial investment cash flows ..

#how to calculate initial investment cash flows ..

Working capital managment policies, types of working managment policies

types of working managment policies

Optimal capital structure, (a) The calculation of the Weighted Average Cost...

(a) The calculation of the Weighted Average Cost of Capital (WACC) is theoretically easy but practically complex. Discuss. (b) Two-fifths of the total market value of Jefferson

What are the rationales of interest swaps, Question: i) What are the ...

Question: i) What are the rationales of interest swaps? ii) You are the corporate treasurer of LSE International Inc. Your firm, rated as AAA, is able to raise capital in

Advantages and disadvantages of aggressive working capital, What are the ad...

What are the advantages and disadvantages of the aggressive working capital financing approach? An belligerent working capital financing approach typically results in a lower c

Accounting period - accounting principle, Accounting Period - Accounting Pr...

Accounting Period - Accounting Principle Accounting period refers to span of time at the end of that and for which the financial statement are prepared to throw light on the r

Frfd, dsfsd

dsfsd

Write Your Message!

Name

Email id

Message

Verfication Code

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages