Total assets must always equal the sum of temporary,permanent,and spontaneous sources of financing.

Question

Quizplus · Accepted Answer

This statement is true according to the accounting equation, which states that Total Assets = Total Liabilities + Owner's Equity. Temporary, permanent, and spontaneous sources of financing are all included in the liability and owner's equity categories of the equation, so their sum should always equal total assets.

Total Assets Must Always Equal the Sum of Temporary,permanent,and Spontaneous