Total assets of a firm are financed with liabilities and stockholders equity.?

Question

True or False?

Answer 1

Unless the assets have no corresponding debt or paid with cash. True

Answer 2

Also Sales.

The accounting equation is

Assets=Liabilities + Capital (Stockholders Equity).

The sources for cash is either borrowing, issuing notes or additional stock, and of course sales.

Answer 3

true if liabilities include loans and stockholders equity includes reserves and surplus.