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29 May, 07:18

Which of the following best describes owner's equity?

A. Equal to the business' liabilities less the business' assets

B. The owner's interest or worth in the business

C. What the owner owes the business

D. What the business owes

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Answers (1)
  1. 29 May, 07:47
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    Best describes owner's equity:

    B. The owner's interest or worth in the business.

    Owner's equity is equal to the business assets less the business liabilities.

    Equity = Assets - Liabilities

    In the balance sheet, owner's equity is the term used if the business is a sole proprietorship. If the business is a corporation, the equity portion of the balance sheet states Stockholder's Equity (common stock, preferred stock, paid-in capital in excess of par value, paid-in capital from treasury stock, retained earnings, etc)
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