Question

The net assets of business are equal to:

A. current assets - current liabilities
B. total assets + liabilities
C. total assets - total stockholders' equity
D. none of the answer choices are correct

Answer 1

The net assets of a business are equal to the total assets minus total liabilities. Net assets represent the residual interest in the assets of the business after deducting liabilities.

Step-by-step explanation:

The net assets of a business are equal to the total assets minus total liabilities. Net assets, also known as owner's equity or stockholders' equity, represent the residual interest in the assets of the business after deducting liabilities. It is the value that belongs to the owners or shareholders of the business. Net assets can be positive, indicating a profitable business, or negative, indicating a loss or liabilities greater than assets.