Question

Name the aggregate of Shareholders’ Funds and Total Debts:

विकल्प

• Total Debts

• Capital Employed

• Total Assets

• Non-current Assets

Answer 1

Total Assets

Explanation:

According to the fundamental accounting equation of a company’s balance sheet, the total equity and liabilities must always equal the total assets. Shareholders’ Funds represent the owners’ equity, while Total Debts encompass all external liabilities, including both long-term and short-term borrowings. When you combine Shareholders’ Funds and Total Debts, you get the aggregate of the entire liabilities side of the balance sheet, which is mathematically identical to the value of Total Assets of the firm.