Which one of the following equation is correct ? (a) owner's equity= liability + Asset, (b) owner's equity= Asset - liability , (c) liability = owner's equity + Asset , (d) Asset = owner's equity - liability.
Answers
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Option
B is the correct answer...
nishajoshi1298:
Thk
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ANSWER:
The correct option is b which is Owner's Equity = Asset-Liability.
Step-by-step Explanation:
Given: Four options from which we have to choose the correct option.
To find: What is the correct answer for finding out owner's equity.
Solution:
- The value of any business on a rough scale is its assets minus its liabilities.
- This value is the value of the business available to the owner or can be termed as Owners Equity.
- As the owner's equity means the money that he has invested in the company.
- In other words, the Owner's equity is the capital he has invested.
- Therefore, the correct answer is b)Owners Equity= Assets - Liabilities.
PROJECT CODE: #SPJ3
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