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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?
False
True
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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
If the liablilities owned by a business total 300000 and owners equity is equal to 300000 then will the assets also total 300000?
No. Assets = Liabilities + Owner's Equity = 300,000 + 300,000 = 600,000
If equity is 300000 and liabilities are 192000 then assets equal?
108000
The difference between assets and liabilities is?
assets are what the business owned and liabilities are what the business owe.
What causes stockholder equity to change?
Remember that in accounting, the Mother of All Equations is: Assets - Liabilities = Stockholders' Equity Anything that increases or decreases your assets or liabilities is going to cause your Stockholders' Equity to change as well.
What is current liabilities to total assets ratio?
Current liabilities to total assets ratio is the comparison between total assets in business with current liabilities in business.
Is owners equity equal to the business liabilities less the business assets?
No. Owners Equity is equal to Business Assets less Business Liabilities.
If the assets owned by a company total 500000 and the stockholders equity totals 400000 do liabilities total 100000?
1. Basic Accounting Equation: Assets = Liabilities + Owners Equity 500000 = Liabilities + 400000 Liabilities = 500000 - 400000 Liabilities = 100000
What is the appropriate order for a company's chart of accounts?
assets, liabilities, stockholders' equity, revenues, expense
What are assets liabilities and equity?
It is the basic accounting equation which shows the relationship of business assets toward liability and equity and it tells that all assets must generate enough money to pay all liabilities and owner's capital to be successful business.
If total assets increased 150000 during the year and total liabilities decreased 80000 what is the amount of stockholders' equity at the end of the year?
If total assets increased 150000 during the year and total liabilities decreased 80000 what is the amount of stockholders' equity at the end of the year?
What is the accounting equation and when is it balanced?
There is a lot of accounting equations, but i assume you mean Assets=Liabilities+stockholders' Equity.
Why are the assets of a business equal to the capital plus liabilities?
Basic accounting equation = assets = liabilities + capitalit is so because capital as well as other liabilities have to be paid by the business at the dissolution time of business and at dissolution time or liquidation time business must have assets equal to liabilities plus owner's equity to pay all liabilities of business without going insolvent otherwise business will become insolvant and somebody will not get all it's liabilities completely cleared at the time of liquidation of business.
