On a balance sheet, the assets minus the liabilities of a company reflected in the balance sheet should total zero.

Name: On a balance sheet, the assets minus the liabilities of a company reflected in the balance sheet should total zero.
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The balance sheet equation states that assets = liabilities + equity. If assets minus liabilities equals zero, then equity would also be zero, which is not typically the case for a going concern.

On a Balance Sheet, the Assets Minus the Liabilities of a Company