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Author Question: Which of the following best describes why the left and right sides of a balance sheet are equal? (Read 107 times)

serike

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on: Jul 9, 2019
Which of the following best describes why the left and right sides of a balance sheet are equal?
◦ By accounting convention, the assets of a company must be equal to the liabilities of that company.
◦ By definition, the assets plus the liabilities will be the same as the stockholders' equity.
◦ In a properly run business, the value of liabilities will not exceed the assets held by the company.
◦ The assets must equal liabilities plus stockholders' equity, because stockholders' equity is the difference between the assets and the liabilities.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by serike on Jul 9, 2019

joshraies

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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serike

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Reply #2 on: Jul 9, 2019
Thank you!


joshraies

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Reply #3 on: Jul 9, 2019
Always glad to help...


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