CUET Preparation Today
| Which of the following statement is correct ? |
Assets = Liabilities + Shareholders funds Assets = Total funds Assets = Funds of outsiders None of the above |
| Assets = Liabilities + Shareholders funds |
| This statement represents the fundamental accounting equation, which states that the total assets of a company are equal to the sum of its liabilities and shareholders' equity (also referred to as shareholders' funds or owner's equity). It is the foundation of the balance sheet and reflects the principle that a company's assets must be financed either by borrowing (liabilities) or by the investment of the owners (shareholders' equity). |
