CFA Practice Question

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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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