Question

Assets area. always lower than liabilitiesb. equal to liabilities, less than owner's equityc. the same as expenses because they are acquired with cashd. financed by the owner and/or creditors

Answer 1

Option D) financed by the owner and/or creditors

Step-by-step explanation:

The total Assets are financed by the Liabilities and the Equity, on one side the total assets of the company and on the other side how do you finance the Assets.

The Assets are split in Short Term and Long Term, then you have Liabilities of Short Term and Long Term plus owner's equity.

Total Assets must be equal to the sum of Liabilities and Equity.

Total Assets = Total Liabilities + Equity.