Question

What is the typical make-up of a balance sheet?
(A) The overall values of outstanding bonds plus outstanding stocks is equal to the total assets of the company. (Bonds + Stocks = Total Assets)
(B) The total liabilities plus the company's net worth equals the total assets of the company. (Liabilities + Net Worth = Total Assets)
(C) The capitalization less its liabilities set equal to the assets of the company. (Capitalization - Liabilities = Assets)
(D) The current liabilities added to the fixed liabilities of the company set equal to the assets of the company. (Fixed Liabilities + Current Liabilities = Assets)

Answer 1

Answer: B Assets = Liabilities + Net Worth

Explanation:

The Balance Sheet which is also known as the Statement of financial position contains information on the total assets of a company, liabilities and the net worth of the owner or owner's equity.

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