# 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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### 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
Final Exam
Chapter Exam

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