Total Assets Must Always Equal Total Liabilities Plus Total Owners

question 48

True/False

Total assets must always equal total liabilities plus total owners' equity.

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Definitions:

Cost To Retail Ratio

A method used in retail to calculate inventory value by comparing the cost of goods to their retail price.

Ending Inventory

Ending inventory is the value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Gross Profit Method

An accounting technique used to estimate inventory levels and cost of goods sold by utilizing the gross profit margin.

Net Sales

The total revenue from sales minus returns, allowances for damaged or missing goods, and discounts.