Question

Assets will be equal to capital if there are no liabilities

Answer 1

Answer:

what do you mean please explain it to me please

Answer 2

Answer:

The given statement is true, "Assets will be equal to capital if there are no liabilities."

Explanation:

• One of the core concept of accounting says that the assets of the firm is equal to its liabilities.
• Liabilities include both internal and external liabilities.
• The internal liabilities are also known as "Capital".

As per the accounting equation;

Assets = Capital + Liabilities.

Given that there are no liabilities in a firm.

Since, liability is zero, we can say;

Asset = Capital + 0

Asset = Capital

So, the assets will be equal to capital if there are no liabilities. The given statement is true.

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