BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$160, 000
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$100, 000
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$60, 000
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$40, 000
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Detailed explanation-1: -It is calculated by deducting all liabilities from the total value of an asset (Equity = Assets – Liabilities).
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: -Liabilities = Assets – Shareholder’s Equity To determine the total amount of liabilities, find the amount of total assets and equity on your balance sheet.
Detailed explanation-4: -How do you calculate owner’s equity? You calculate owner’s equity by deducting the total business liabilities (such as wages, salaries, loans and debts) from the total business assets (including property, equipment, inventory, capital goods and retained earnings).