The measurement of the assets and liabilities on the balance sheet also determines the measurement of ______________.
A)additional paid-in-capital
B)common stock
C)retained earnings
D)total shareholders' equity
E)par value

Question

Quizplus · Accepted Answer

Total shareholders' equity is equal to the assets minus the liabilities on the balance sheet. Therefore, the measurement of assets and liabilities directly affects the measurement of total shareholders' equity. Choices A, B, C, and E are not directly affected by the measurement of assets and liabilities on the balance sheet.

The Measurement of the Assets and Liabilities on the Balance