What is total equity?
(Class 11)
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Explanation:
The total equity of a business is derived by subtracting its liabilities from its assets. The information for this calculation can be found on a company's balance sheet, which is one of its financial statements. The asset line items to be aggregated for the calculation are:
Cash
Marketable securities
Accounts receivable
Prepaid expenses
Inventory
Fixed assets
Goodwill
Other assets
The liabilities to be aggregated for the calculation are:
Accounts payable
Accrued liabilities
Short-term debt
Unearned revenue
Long-term debt
Other liabilities
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