The net assets of a corporation are equal to:
A) Contributed capital.
B) Retained earnings.
C) Shareholders' equity.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

The net assets of a corporation are equal to the shareholders' equity, which is the residual interest in the assets of the corporation after deducting liabilities. Contributed capital and retained earnings are two components of equity, but on their own, they do not represent the total equity or net assets of the corporation.

The Net Assets of a Corporation Are Equal To