--%>
Assignment Help - homework help

Why do assets equal the sum of total liabilities and equity

Why do overall assets equal the sum of total liabilities and equity?  Describe.
            Assets = Liabilities + Equity
Assets are the items of value business owns. Liabilities are claims on the business through non-owners, and equity is the owners' claim onto the business. The total of the liabilities and equity is the overall capital contributed to the business, which, through definition, equals the total value of the assets.

   Related Questions in Finance Basics

  • Q : Finance associated to the fields of

    How is finance associated to the fields of economics and accounting?

    		•
  • Q : How earnings obtainable to common

    Normal 0 false false

  • Q : Explain Governors Budget Summary or

    Governor's Budget Summary (or A-Pages): This is a companion publication to the Governor’s Budget which outlines the Governor’s goals, policies, and objectives for the budget year. This gives a perspective on important fiscal and/or structu

    		•
  • Q : Resolving ranking conflict Describe how

    Describe how to resolve a "ranking conflict" among the net present value and the internal rate of return. Why should the conflict be resolved as you described? Whenever there is a ranking conflict among net present value and internal rate of re

    		•
  • Q : Explain Financial Reporting Financial

    Financial Reporting: It is a set of documents made generally by government agencies at the end of accounting period. It usually enclose summary of accounting data for that time period, with background forms, notes, and other information.

  • Q : Generalization Normal 0 false false

    Normal 0 false false

  • Q : Define Budget Year Budget Year (BY) :

    Budget Year (BY): The next state fiscal year, starting July 1 and ending June 30, for which the Governor's Budget is proposed (that is, the year following the present fiscal year).

    		•
  • Q : Influence of mergers on fees assessed

    What influence have mergers had on fees assessed for retail bank services? The effect is not clear. Market conditions and the level of competition often determine the cost for retail bank services.

    		•
  • Q : Describe the equilibrium price and

    Assume the total demand for wheat and the net supply of wheat per month in the Kansas City grain market are as: 16_Table for wheat.png

    		•
  • Q : What is Final Budget Final Budget :

    Final Budget: Usually refers to the Governor’s Budget as amended by actions taken on the Budget Bill (example, legislative changes, and Governor’s vetoes). Note

    		•