Question

The equation which shows a company’s resources equal claims to those resources is___________.a.Assets = Liabilities + Stockholders' Equity. b.Common Stock + Retained Earnings = Stockholders’ Equity. c.Cash Increases − Cash Decreases = Change in Cash. d.Revenues − Expenses = Net Income.

Answer 1

Assets =  Stock holder's Equity + All outsider Liabilities

Explanation:

Assets = All Short term Assets + All Long Term Assets

Short term Assets are those assets which can be easily recovered  into cash with in one year

Long term assets are those which can be recovered after one year

Liabilities = Short term + Long term (Outsider Liabilities)

Short term liabilities are those which is to be paid within one year

Long term liabilities are those which is to be paid after one year