Canadian Securities Course (CSC) Level 1 Test 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

How do you find total equity of a company?

Assets + Liabilities

Liabilities - Assets

Total assets - total liabilities

To find the total equity of a company, you need to subtract the total liabilities from the total assets. This calculation is represented by the accounting equation: Total Assets - Total Liabilities = Total Equity. Equity is essentially what's left over for the shareholders after all liabilities have been settled. Therefore, option C, "Total assets - total liabilities," is the correct answer.

Option A, "Assets + Liabilities," combines the assets and liabilities together without considering the distinction between the two components, which is crucial in determining equity. Option B and Option D have the calculation in reverse, which would not provide an accurate representation of the total equity of a company.

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Total liabilities - total assets

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