Stockholders' equity is
A) added to assets and the two are equal to liabilities
B) added to liabilities and the two are equal to assets
C) subtracted from liabilities and the net amount is equal to assets
D) equal to the total of assets and liabilities

Question

Quizplus · Accepted Answer

Stockholders' equity, when added to liabilities, equals the total assets of a company. This relationship is encapsulated in the fundamental accounting equation: Assets = Liabilities + Stockholders' Equity.

Stockholders' Equity Is