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?

Start Your Free Trial To Take This Quiz

As a member, you'll also get unlimited access to over 70,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Free 5-day trial
It only takes a few minutes to set up and you can cancel at any time.
Already registered? Login here for access

1. On which financial statement is equity reported?

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

Start your free trial to access this entire page
A premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

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
Support