Ask Question
BusinessBusiness
11 October, 06:52

Which of the statements correctly represents the accounting equation?

+3
Answers (1)
  1. 11 October, 07:01
    0
    What the accounting equation tells us is that everything that a firm owns, it acutally either owes it to the owners of the firm, or to creditors.

    Explanation:

    This is why the accounting equation is represented as:

    Assets = Liabilities + Stockholders' Equity

    Where Assets represent what the firm owns, liabilities is what the firm owes to creditors, and Stockholders' Equity (or Owners' Equity) is what the firm owes to the owners.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the statements correctly represents the accounting equation? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A 5% coupon, 18-year annual bond has a yield to maturity of 6.2%. Assuming the par value is $1,000 and the YTM does not change over the next year, what will the price of the bond be today
Answers (1)
Your credit score is created only once is requested? True or False
Answers (1)
When the price of Nike tennis shoes goes from $100 to $80, the quantity demanded increases from 20 to 30 million. Over this price range, the absolute value of the price elasticity of demand is a. 1. b. 1.80. c. 2.50. d. 0.55. e. 1.25
Answers (1)
Daniel owns preference shares of a company that has earned great profits this year. What can Daniel expect to receive from the company this year? A higher rate of dividend compared with the amount received last year B.
Answers (1)
Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units. If an amount is zero, enter "0". a.
Answers (1)
New Questions in Business
You spend $5 on materials to make a scarf. You think you have added $10 of value, so you set the price to $15. Nobody buys the scarf at that price, so you lower the price to $12, and someone buys it.
Answers (2)
Katie needed to take out three loans. a) First, she paid $596.24 in interest on a nine-month loan for which the rate was 11%. How much money did she borrow? b) A year later, Katie borrowed $10,000 for three months.
Answers (1)
During the year, total liabilities increased $105,000 and stockholders' equity decreased $83,000. What is the amount of total assets at the end of the year?
Answers (1)
What is cosideration
Answers (1)
With the federal funds rate near zero and the economy still struggling, the Fed began buying 10-year Treasury notes and certain mortgage-backed securities to keep interest rates low. This policy is known as
Answers (1)
Home » Business » Which of the statements correctly represents the accounting equation?
Sign Up Forgot Password?