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Yes, the accounting equation, total assets = total liabilities + total equity, may be rewritten to determine total debt as being equal to total assets - total of owner's equity. Simply stated, the total assets (the firm's value) is broken up between total debt (what you owe) and owner's equity (what you own).

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โˆ™ 2010-03-21 16:51:54
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Q: Does total debt equal total assets minus total equities?
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Assets = Liabilities + equities therefore equities = Assets - liabilities If Assets go down Equities reduce in value Earnings = Equities / Total No. of shares therefore earnings go down


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