Essentials of Corporate Finance
Essentials of Corporate Finance
8th Edition
ISBN: 9780078034756
Author: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 2.1, Problem 2.1ACQ
Summary Introduction

To discuss: The meaning of balance sheet identity.

Introduction:

Balance sheet refers to the statement that indicates the financial position of a firm. The statement helps to understand the amount of assets, liabilities, and shareholders’ equity of the firm. The balance sheet has two sides namely assets and liabilities.

The assets include the current assets and long-term assets of the firm. The liabilities include the current liabilities, long-term liabilities, and the shareholders’ equity. The liabilities side of the balance sheet always equals the assets side of the balance sheet.

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Chapter 2 Solutions

Essentials of Corporate Finance

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