Question

Assets are a.equal to liabilities less stockholders' equity b.always lower than liabilities c.financed by the stockholders and/or creditors d.the same as expenses because they are acquired with cash

Answer 1

Answer:

The answer is C.

Explanation:

Assets of a company or firm is the addition of both liabilities and shareholders' equity.

The capital structure of a company mostly comprises debt and equity i.e it is either financed by debt (short-term and long-term debt) and equity (contribution from its owners).

Option A is not correct. That term is for shareholders' equity and not for asset.

Option B is not correct because either asset or liability can be lower or higher.