balance sheet identity

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 ?
After this entry, the balance sheet identity is maintained since assets are increased by $10,000 for the machine but reduced $10,000 for the decrease in cash.
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).