Which one is correct?
A opencing capital = opening total asset - closing total asset
B closing capital = opening total liabilities + closing liabilities
C opening capital = opening total asset - opening total liabilities
Answers
Answer:
C opening capital = opening total asset - opening total liabilities
The correct option is C) opening capital = opening total asset - opening total liabilities
Explanation:
Opening capital: The idea behind open capital is partnership financing where risk and reward are shared. A guarantee society or clearing union allows for the sharing of risk, and trade credit between buyers and sellers is backed by a mutual guarantee
Opening total asset: Small business owners can determine whether they can pay off their obligations by calculating their entire assets. Additionally, it provides a glimpse of the company's overall financial situation. The assets of a company might be used as leverage (or a guarantee) to obtain a new loan, therefore a potential lender will also want to know their value.
Opening total liabilities: Total liabilities are all of a person's or business's responsibilities and debts to third parties. All of the company's assets are included as assets, and all sums owed for upcoming obligations are recorded as liabilities. Total assets less total liabilities equals equity on a balance sheet.
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