The Net Assets of a Business Are Equal to

question 37

Multiple Choice

The net assets of a business are equal to

• A)current assets minus current liabilities.
• B)total assets plus total liabilities.
• C)total assets minus total shareholders' equity.
• D)none of these.

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Definitions:

Real Capital

Physical assets like buildings, machinery, and equipment used in the production of goods and services, excluding financial assets and human capital.

Past Saving

The accumulation of previously saved money or assets that can be used for future investments or expenditures.

Investment

The allocation of resources, such as capital, to generate income or profit.

Standard of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a certain geographic area.