Stockholders' Equity Is Equal to

question 51

Multiple Choice

Stockholders' equity is equal to

• A)net working capital plus long-term liabilities.
• B)current assets plus fixed assets minus long-term liabilities.
• C)total assets plus total liabilities.
• D)current assets minus total liabilities plus fixed assets.
• E)net working capital plus total fixed assets.

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Definitions:

Equity

In finance, it refers to the value of an ownership interest in property, including shareholders' equity in a corporation. In economics, it often refers to fairness or justice in the distribution of wealth and resources.

Indifference Curves

Graphical representations used in economics to show combinations of two goods that provide a consumer with the same level of satisfaction.

Utility Possibilities Frontier

A graphical representation that shows the maximum amount of two goods that an economy can produce using all its resources efficiently, given the technology.

Contract Curve

In an Edgeworth box diagram, it represents the set of optimal distribution points for two traders based on their preferences.