balance sheet identity

Also found in: Wikipedia.

Balance sheet identity

Total assets = Total liabilities + Total stockholders' equity.

Net Assets

In accounting, the value of a company's total assets less its total liabilities and intangible assets. Put another way, the book value is the shareholders' equity, or how much the company would be worth if it paid of all of its debts and liquidated immediately.

balance sheet identity

References in periodicals archive ?
This formula is derived from the balance sheet identity and the definition of the weighted average cost of capital (for a similar presentation, see Berk and De Marzo, 2007).