The net assets of a corporation are equal to:
A)Contributed capital.
B)Retained earnings.
C)Shareholders' equity.
D)None of the above.

Question

Quizplus · Accepted Answer

Net assets refer to the total assets minus total liabilities of a corporation. Shareholders' equity represents the residual interest in the assets of a corporation after deducting its liabilities. Therefore, shareholders' equity is equal to net assets. Contributed capital and retained earnings are components of shareholders' equity, but not equal to net assets.

The Net Assets of a Corporation Are Equal To