Name: Aleesha Amjad

Roll no: (1725109001)

Class: B.com (8th Semester)

Question:
 Justify both the equations are same:   

1) Assets = Liabilities + Owners Equity

2) Non-operating assets= Net Financial Obligation +

Stockholder’s Equity
 First of all, lets discuss equation (2) Net operating assets are equal to the
total assets less than non-operating assets. Whereas, net financial obligations
are equal to total liabilities less non-operating liabilities/ non-operating
marketable securities. And as for the stockholder’s equity stockholders are
the owner of the company. So, stockholders equity and owners equity are
one of the same things.
 Now, as we can see that both equations are same, both have assets at one
side and liabilities plus owner’s equity on the other side.
 The only difference in the equation 1 and 2 is that equation 1 deals with all
the assets and liabilities let them be operating or non-operating. Whereas,
equation 2 only deals with operating we deduct non-operating assets and
liabilities.
  If we subtract non-operating assets and liabilities from equation 1. It will
eventually get equation 2 which justifies that both are same equations only 2
will be drawn from 1 as we deduct non-operating assets and liabilities.