Asked by Nicholas Grenville on Apr 27, 2024
Verified
The assets and liabilities of a company are $128,000 and $84,000, respectively. Owner's equity should equal
A) $212,000
B) $44,000
C) $128,000
D) $84,000
Assets and Liabilities
Assets are resources owned by a business that have economic value, while liabilities are obligations a business owes to others.
Owner's Equity
The owner's residual interest in the assets of the business after deducting liabilities.
- Comprehend the fundamental principles of the accounting equation and its elements.
Verified Answer
SN
Sandile NokuthulaApr 30, 2024
Final Answer :
B
Explanation :
Owner's equity is calculated by subtracting liabilities from assets.
Therefore, owner's equity = assets - liabilities
= $128,000 - $84,000
= $44,000.
Hence, the correct option is B.
Therefore, owner's equity = assets - liabilities
= $128,000 - $84,000
= $44,000.
Hence, the correct option is B.
Learning Objectives
- Comprehend the fundamental principles of the accounting equation and its elements.
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