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is it true or false if the liabilities owed by a business total $300,000 and stockholders equity is equal to $300,000, then the assets also total $300,000?
Updated: 9/27/2023
False
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Earn +20 ptsQ: Is it true or false if the liabilities owed by a business total $300,000 and stockholders equity is equal to $300,000, then the assets also total $300,000?
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Continue Learning about Math & Arithmetic
What is the formula for finding liabilities?
Assets - Capital = Liabilities
What is the meaning of a quick ratio greater than 1.0 and less than 1.0?
A quick ratio is something used in financial accounting. It is equal to your quick assets (cash and accounts receivable) divided by your current liabilities. If it is greater than 1.0 then your financial statements are looking good because you have more assets than liabilities and are therefore (hopefully) making revenue. If it is less than 1.0 than your liabilities outweigh your assets and your business could be headed for failure.
How do you calculate net capital ratio?
Net Capital Ratio =Total assets / Total Liabilities
If total liabilities increased y 4000 then?
Assets increase by $4,000.00 Owner's Equity must decrease by $4,000.00
If a company's return on equity is 10 percent its profit margin is 5 percent and its asset turnover is 1.57 what is it's equity multiplier?
EQUITY MULTIPLIER=Total Assets / Total Stockholders' Equity
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