Question

The net assets of a business are equal to Question 39 options:

a.Current assets minus current liabilities

b.Total assets plus total liabilities

c.Total assets minus total stockholders' equity

d.None of the above.

Answer 1

The Net Assets are the difference between Total Assets and Total Liabilities

Option a Current Assets minus current Liabilities is Working Capital and not Net Assets, therefore incorrect.

Option b Total assets plus total liabilities is incorrect as the Difference of Total Assets and Total Liabilities is the Net Assets.

Option c Total assets minus total stockholders' equity is Total Liabilities and not Net Assets and hence this option is also incorrect

Option d None of the above is the correct option as none of the option has Total Assets minus Total Liabilities, therefore Option d is correct.