Net Assets Are Equal to

question 2

Multiple Choice

Net assets are equal to

• A) Total assets minus owners' equity
• B) Total assets minus net income
• C) Total assets minus dividends paid
• D) Total assets minus total liabilities

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.

Balance Sheet

A statement of finances that shows the assets, liabilities, and equity of shareholders of a corporation at a certain moment.

Revenue Account

An account that tracks the income earned from normal business operations, such as sales of goods or services, distinguished from other types of income.

Withdrawal Account

A withdrawal account is an account in a partnership or sole proprietorship from which an owner can withdraw his or her share of the business profits.