The stockholders' equity of a company should equal the sum of its total assets and total liabilities.

Name: The stockholders' equity of a company should equal the sum of its total assets and total liabilities.
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Question

Quizplus · Accepted Answer

The stockholders' equity of a company is a component of the total liabilities and equity, not the sum of those two categories. The correct equation is: Total assets = total liabilities + stockholders' equity.

The Stockholders' Equity of a Company Should Equal the Sum