BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$22, 000.
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$20, 000.
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$42, 000.
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$64, 000.
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Detailed explanation-1: -What are the liabilities for Cancon Company as of December 31, 2020? $42, 000-$22, 000 = $20, 000(Asset tot.-Owner’s equity tot. = Liabl.
Detailed explanation-2: -You can calculate it by deducting all liabilities from the total value of an asset: (Equity = Assets – Liabilities). In accounting, the company’s total equity value is the sum of owners equity-the value of the assets contributed by the owner(s)-and the total income that the company earns and retains.
Detailed explanation-3: -The formula for owner’s equity is: Owner’s Equity = Assets – Liabilities.
Detailed explanation-4: -Equity is equal to total assets minus its total liabilities. These figures can all be found on a company’s balance sheet for a company. For a homeowner, equity would be the value of the home less any outstanding mortgage debt or liens.
Detailed explanation-5: -The three elements of the accounting equation are assets, liabilities, and shareholders’ equity. The formula is straightforward: A company’s total assets are equal to its liabilities plus its shareholders’ equity.