Assets minus liabilities (as stated on the balance sheet)is equal to
A) adjusted balance sheet valuation.
B) new worth.
C) opportunity cost.
D) capitalized earnings.
E) future earnings.

Question

Quizplus · Accepted Answer

Assets minus liabilities on the balance sheet represents a company's equity or net worth. It reflects the residual claim of the owners of the business after all debts and obligations are settled. Therefore, the correct answer is B, which is new worth.

Assets Minus Liabilities (As Stated on the Balance Sheet)is Equal