Question

When assets are subtracted from liabilities it will be equal to?
O a.
Net income
O b. Capital
O C. Working capital
O d.
Goodwill​

Answer 1

Answer:

Working capital

Explanation:

Subtracting liabilities from assets shows the net worth of the business A basic tenet of double-entry bookkeeping is that total assets (what a business owns) must equal liabilities plus equity (how the assets are financed). In other words, the balance sheet must balance.

Answer 2

When assets are subtracted from liabilities it will be equal to b. Capital.

Explanation:

• It indicates that a company's entire assets equals its total liabilities plus owner's (or shareholders') equity when assets minus liabilities equals capital.
• Similarly, an increase in liabilities indicates a monetary influx.
• Debt, for example, is a liability.
• When you add additional debt to your balance sheet, you're also adding to your borrowed cash.
• In this situation, both assets (cash) and liabilities (debts) rise by the same amount (debt).

#SPJ2