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What is the difference between equity and net assets?
Does net assets added market value changes at the end of the year?
Is it true too that net assets are used to finance the business which means to raise enough money to run the business operations?
The net assets = total assets less total liabilities.
Equity is the total amount owing to the shareholders in a limited company.
The total equity is always equal to the total net assets.
It is the equity plus the long term liabilities that provide the finance for the business. This in invested in the assets used to run the business.
All of this is covered in my free lectures. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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