494FinanceMedium
Balance Sheet is based upon which of the following formula?
AAssets + Stockholder’s equity = Liabilities
BAssets = Liabilities – Stockholder’s equity
Correct answer
B. Assets = Liabilities – Stockholder’s equity
Explanation
Assets = Liabilities – Stockholder’s equity is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.