A business owner shows you his balance sheet and points out that the total amount of equity
Question:
A business owner shows you his balance sheet and points out that the total amount of equity is $4,567,000. He says that is the price a buyer should pay for the business. Do you agree? Explain.
Balance Sheet Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Equity is simply the difference between assets and liabilities It represents the book ...View the full answer
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