Question

Surses / I-TVET / Diploma / Year One(1) DMAF.121 March - June 202 Cerea

The stockholders' equity of a company is the difference between assets and liabilities
O a. True
O b. False​

Answer 1

a. True

Step-by-step explanation:

As we know that

Accounting equation shows that

Total assets = total liabilities + stockholder equity

if we need to find out the stockholder equity so it should be

= total assets - total liabilities

That means it shows the difference between the assets and liabilities

Therefore the given statement is true