1. Assets = Liabilities + Capital
  2. Liabilities = Assets + Capital
  3. Capital = Assets + Liabilities
  4. All of these
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1 Answers

Answer: Option 1

The balance sheet displays the company’s total assets, and how these assets are financed, through either debt or equity. It can also be referred to as a statement of net worth, or a statement of financial position. The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity(Capital).

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