If a balance sheet is prepared correctly,assets plus liabilities equals net worth plus savings.

Name: If a balance sheet is prepared correctly,assets plus liabilities equals net worth plus savings.
Brand: Quizplus
Rating: 4.9 (35 reviews)

Question

Quizplus · Accepted Answer

In a correctly prepared balance sheet, assets equal liabilities plus equity (or net worth), not net worth plus savings. Savings could be part of the assets or contribute to net worth but are not added separately in the equation.

If a Balance Sheet Is Prepared Correctly,assets Plus Liabilities Equals