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When assets are subtracted from liabilities it will be equal to?O a.Net incomeO b. CapitalO C. Working capitalO d.Goodwill |
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Answer» Answer: WORKING capital Explanation: Subtracting liabilities from assets shows the NET worth of the business A BASIC tenet of double-entry BOOKKEEPING is that total assets (what a business owns) MUST equal liabilities plus equity (how the assets are financed). In other words, the balance sheet must balance. |
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