The Stockholders' Equity of a company should equal the total of its Total Assets and Total Liabilities.

Name: The Stockholders' Equity of a company should equal the total of its Total Assets and Total Liabilities.
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Question

Quizplus · Accepted Answer

The Stockholders' Equity of a company is a portion of the Total Equity, which is the difference between Total Assets and Total Liabilities. Therefore, the equation should be Total Equity = Total Assets - Total Liabilities, and not Total Equity = Total Assets + Total Liabilities.

The Stockholders' Equity of a Company Should Equal the Total