The percentage of liabilities in a company's assets plus the percentage of owners' equity in its assets is always equal to 100.

Question

Quizplus · Accepted Answer

This statement is true because a company's assets can be divided into two main categories: liabilities and equity. Liabilities are the obligations or debts that the company owes to others, while equity represents the ownership interest of the shareholders. Therefore, the sum of the percentage of liabilities and the percentage of owners' equity in a company's assets must always add up to 100%.

The Percentage of Liabilities in a Company's Assets Plus the Percentage