Question

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.

Answer 1

Option

B is the correct answer...

Answer 2

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