The Balance Sheet Identity Can Be Stated as Total Assets

question 12

True/False

The balance sheet identity can be stated as Total assets = Total liabilities + Total shareholders' equity.

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Definitions:

Par Value

A nominal value assigned to share of stock in the charter of a corporation, often used in the calculation of capital accounts.

Stated Value

A nominal value assigned to no-par-value stock by the corporation's board of directors to serve as the base figure for the accounting of the stock.