Describe the elements of the balance sheet equation.
Posted: Sat Aug 07, 2021 7:21 am
Answer: The balance sheet equation states that assets equal liabilities plus stockholders' equity.
Assets are a firm's economic resources such as cash, supplies, inventory, and equipment.
Liabilities are a firm's debts such as accounts payable and notes payable. Stockholders' equity
consists of common stock and retained earnings.
Assets are a firm's economic resources such as cash, supplies, inventory, and equipment.
Liabilities are a firm's debts such as accounts payable and notes payable. Stockholders' equity
consists of common stock and retained earnings.