CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

On the balance sheet, the amount that is "net assets" is equivalent to the amount shown as "owners' equity." True or False?
Correct Answer: True

Remember the accounting equation: assets minus liabilities equals owners' equity. "Net assets" and "owners' equity" on any given balance sheet are equal amounts.

User Contributed Comments 9

User Comment
chenyx net asset=owner's equity
wroger Net asset = Total assets - Total Liability
drets A=L+E
mirfanrana net assets equals owner equity
net assets equals TA minus TL
3dmouse Assets = Liab + OE
-Liab -Liab
A - L = OE

Net Asset = A - L
Net Asset = OE
georgek why doesn't net assets mean assets net of any contra asset accounts?
Shaan23 Net Assets = OE = Shareholders E = Net Worth = Net Book Value = Partners Value = A - L

Just know the terms
gclafort thanks @shaan23
F79KHAN Confused by this a little bit, I felt that net assets should also describe asset amounts after removing contra accounts. But I suppose net assets could also be interpreted as net of liabilities thereby describing owners equity.
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