The basic equation for a balance sheet is "assets minus current liabilities = net worth."

Name: The basic equation for a balance sheet is "assets minus current liabilities = net worth."
Brand: Quizplus
Rating: 4.9 (58 reviews)

Question

Quizplus · Accepted Answer

This equation is commonly known as the accounting equation and is used to calculate a company's net worth or equity. Assets represent what the company owns, while current liabilities represent what the company owes in the short term. Subtracting current liabilities from assets gives the company's net worth or equity.

The Basic Equation for a Balance Sheet Is "Assets Minus