n NISM Certifications
XV NISM Series XV
Medium

If a company’s Total Assets and Total Liabilities are known, what can be easily calculated?

Practice question from NISM XV Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Depreciation on assets

  2. B

    Inventory as on Balance sheet day

  3. Total Equity

    Correct answer

  4. D

    Return on assets

Why this is the answer

Equity is calculated as Total Assets minus Total Liabilities. It represents the residual value after liabilities are paid.

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