On the balance sheet, total assets must always equal total liabilities. The amount remaining is what...

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On the balance sheet, total assets must always equal total liabilities. The amount remaining is what...

On the balance sheet, total assets must always equal total liabilities. The amount remaining is what is used to finance the firm and includes equity and long-term debt.

business finance

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Answer 1

Answer #1

This statement is not accurate.

Assets = Liabilities + Equity

Assets are the properties of the company. Liabilities and equity are used to finance the firm. Liabilities represent amounts due to outsiders while equity represents amount invested by the owners of the company.

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Answer 2

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