equity means the total liabilty of the company exceeds the total assets.

Positive

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Negative

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Distributed

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Equilibrium

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Negative
The negative amount of owner's equity also means that the company's balance sheet will report liability amounts greater than the amount of assets. The company could operate under those conditions if its assets are turning to cash before the liabilities need to be paid..

Suggest Corrections

Similar questions

90, 000

60, 000

20, 000

80, 000

40, 000

20, 000

A _____ gives an overview of assets, equity, and liabilities of the company.

Join BYJU'S Learning Program