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SFAC No.6 describes the elements comprising the balance sheet as assets, liabilities, and equity. The net assets of a business are equal to a. total shareholders’ equity b. total assets c. current assets d. total assets minus long-term liabilities
Expert Answer
Answer:
Option A i.e. Total Shareholders’ Equity
Net Assets are also known as Owner’s Equity / Shareholder’s Equity. The total assets is equal to Liabilities plus shareholders’ equity.
Therefore, Shareholders’ Equity is equal to Total Assets minus Liabilities.
In other words, Net Assets = Total Assets – Liabilities,
