Asked by Abigail Orozco on Jun 05, 2024
Verified
If the Assets owned by a business total $59,000, Owner's Equity must also total $59,000.
Owner's Equity
The residual interest in the assets of the entity after deducting liabilities, representing what the owners or shareholders own outright.
Assets
Economic resources owned by a business or individual that are expected to bring future benefits.
- Acquire knowledge of the foundational principles behind the accounting equation (Assets = Liabilities + Owner's Equity).
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
False
Explanation :
The accounting equation states that Assets = Liabilities + Owner's Equity. Therefore, Owner's Equity is not necessarily equal to the total assets, as it depends on the amount of liabilities.
Learning Objectives
- Acquire knowledge of the foundational principles behind the accounting equation (Assets = Liabilities + Owner's Equity).