Asked by Nathan Tsung on Jul 15, 2024
Verified
On the balance sheet, owner's equity is
A) added to assets and the two are equal to liabilities
B) added to liabilities and the two are equal to assets
C) subtracted from liabilities and the net amount is equal to assets
D) equal to the total of assets and liabilities
Owner's Equity
The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or owners.
Balance Sheet
A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholders' equity at a specific point in time, offering a basis for computing rates of return and evaluating its capital structure.
Assets
Resources owned or controlled by a business or an individual that are expected to produce future economic value.
- Recognize and categorize various account types (assets, liabilities, equity, revenues, and expenses) and comprehend their functions within financial accounting.
Verified Answer
Learning Objectives
- Recognize and categorize various account types (assets, liabilities, equity, revenues, and expenses) and comprehend their functions within financial accounting.
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