Asked by Peter Shibia on Jul 08, 2024

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Assets are

A) always lower than liabilities
B) equal to liabilities less stockholders' equity
C) the same as expenses because they are acquired with cash
D) financed by the stockholders and/or creditors

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership equity spread among stockholders.

Liabilities

Financial obligations or debts owed by a company to external parties or individuals.

Total Assets

The sum of all current and non-current assets owned by an entity, representing the total resources available for use in operations or to pay liabilities.

  • Understand the basic concepts of assets, liabilities, and stockholders' equity and their roles in the accounting equation.
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Verified Answer

TE
Tyler EnglishJul 10, 2024
Final Answer :
D
Explanation :
Assets are financed by stockholders and/or creditors. A is incorrect because assets can be greater than liabilities, B is incorrect because assets can be greater or less than liabilities less stockholders' equity, and C is incorrect because expenses are not the same as assets.