00:01
Hello students, here is a question.
00:02
How do you calculate the total wealth, the company according to the balance sheet and what are the some accounting terms of a wealth in connection with corporate entity? for example, the retained earnings account fits a category but it is not only the account.
00:17
So, this is our question.
00:18
Let us discuss the answer for this.
00:20
So, wealth is a financial term often referred to a net worth of a business entity.
00:30
It refers to the net worth of a business entity.
00:44
As per the generally accepted accounting principle, the accounting equation given by assets is equal to liabilities plus equity.
00:58
So, here the equity is an equation refers to the net worth.
01:06
In equation, the equity is referred to as net worth or wealth, wealth of a company...