Practicing Success
Practicing Success
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What does "Firms' Capital" represent? |
The total assets excluding goodwill and fictitious assets The total outside liabilities The average profits capitalized The net assets of the firm |
The net assets of the firm |
The correct answer is option 4- The net assets of the firm. "Firms' Capital" represents the net assets of the firm. Net assets are calculated by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets). It reflects the residual value of the assets owned by the firm after deducting its liabilities. |
