What does the equation Total Assets equal?

The equation Total Assets equals Total Liabilities plus Stockholders Equity is fundamental in accounting and finance, specifically rooted in the balance sheet concept. This equation reflects the accounting principle known as the accounting equation, which maintains that a company's resources (assets) are financed by either borrowing (liabilities) or through the owner’s investments (equity).

When looking at this equation, Total Assets comprises everything the company owns, which must be balanced by the company's obligations and the investments made by shareholders. This balance ensures that the total resources controlled by the company are matched by how these resources are financed, providing a snapshot of the company's financial position at a specific point in time.

The other options do not correctly represent the relationship established by accounting principles governing assets, liabilities, and equity. They refer to operations or transactions but do not reflect the fundamental balance that must exist on a company’s balance sheet. The correct choice emphasizes the core principle of accounting, making it essential knowledge for anyone studying real estate finance or accounting practices.