Question

Shareholders' equity is equal to: Group of answer choices total assets plus total liabilities. net fixed assets minus total liabilities. net fixed assets minus long-term debt plus net working capital. net working capital plus total assets. total assets minus net working capital.

Answer 1

Shareholders' equity is equal to net fixed assets minus long-term debt plus net working capital.

Shareholders' equity refers to the amount owners of a company have invested in the said company:

• Shareholders' equity includes the money they've directly invested and the accumulation of income that has been accrued in the name of the company as earned since the start of the investment and reinvestment.
• It refers to the ownership of assets that may have liabilities or debts connected to them.
• Shareholder's equity is equal to the net fixed assets of the company subtracted from the long-term debt and added to the net working capital.
• Another way to ascertain shareholders' equity is by subtracting total assets from total liabilities.

Therefore, shareholders' equity is equal to net fixed assets minus long-term debt plus net working capital.

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