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Calculating Total Equity: Definition & Formula

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What's the best explanation of equity?

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1. On which financial statement is equity reported?

2. Who's paid before common stock shareholders when a corporation terminates business and liquidates?

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About This Quiz & Worksheet

Several factors go into determining equity. This quiz/worksheet will help you assess your understanding of the elements that contribute to its calculation and let you put your skills to the test with practice problems.

Quiz & Worksheet Goals

In these assessments you'll be tested on the methods, definitions, and roles of:

  • Equity and how to calculate it
  • Financial statements
  • Creditors and shareholders
  • Liabilities and assets
  • Preferred stock and common stock

Skills Practiced

This quiz and worksheet allows students to test the following skills:

  • Problem solving - use acquired knowledge to solve practice problems involving equity calculation
  • Distinguishing differences - compare and contrast topics from the lesson, such as preferred stock and common stock
  • Information recall - use your knowledge to answer questions about equity entitlement and the reporting of equity
  • Defining key concepts - ensure that you can accurately describe equity

Additional Learning

To learn more about equity, review the accompanying lesson Calculating Total Equity: Definition & Formula. This lesson covers the following objectives:

  • Define equity and total equity
  • Understand the different classes of ownership units
  • Know the formula for calculating equity
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