The Sum of the Assets of an Entity Is Always

question 10

Short Answer

The sum of the assets of an entity is always equal to the sum of its _________ plus equity.

---

Definitions:

Amortized

The process of spreading out a loan into a series of fixed payments over time, covering both principal and interest.

Outstanding Principal

The portion of a loan amount that has not yet been repaid to the lender.

Principal Repayment

The process of paying back the original amount of money borrowed, excluding interest, in a loan or bond.

Fixed-Rate Mortgage

A mortgage loan that has a fixed interest rate for the entire term of the loan, protecting borrowers from rising interest rates.