Question: Fill in the blank: If your company has more assets than liabilities, the remaining balance is your _____.
- revenue
- cashflow
- profit margin
- equity
Explanation
If a company’s assets exceed its liabilities, the remaining balance represents equity, which is the owners’ residual interest in the business. RevOps principles use equity to understand financial health, capital structure, and resource allocation for operational and strategic decisions. Equity reflects the value retained in the company after obligations are satisfied. Properly accounting for equity ensures accurate reporting and informs investment and growth strategies.
Why the other options are incorrect
A) Revenue is income generated from operations, not residual ownership.
B) Cashflow tracks money moving in and out, not net assets over liabilities.
C) Profit margin measures profitability relative to revenue, not the remaining balance of assets and liabilities.
Source for verification
Balance Sheet Basics
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