Which of the following statements best defines the equity or capital of a business?
A Equity or capital of a business is represented by the net assets of the business
B Equity or capital of a business is equivalent to the value of the business
C Equity or capital of a business is equivalent to the value of the business assets
D Equity or capital of a business is represented by the total assets of the business
Answers
Answer:
option b is correct answer
Answer:
A Equity or capital of a business is represented by the net assets of the business
Explanation:
A Equity or capital of a business is represented by the net assets of the business
Is the correct answer of this question.
The equity of a firm indicates its owners' (shareholders') residual claim on the company's earnings. The balance sheet contains all of the information required to calculate a company's shareholder equity. Total liabilities are subtracted from total assets to arrive at this figure.
Equity is the value that would be restored to a company's shareholders if all assets were liquidated and all debts were paid off. Equity may also be defined as the amount of residual ownership in a company or asset remaining after deducting all obligations linked with that asset.
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