If total liabilities are $3,000 and total assets are $10,000, owner's equity must be
A) $7,000.
B) $3,000.
C) $10,000.
D) $13,000.

Name: If total liabilities are $3,000 and total assets are $10,000, owner's equity must be A) $7,000. B) $3,000. C) $10,000. D) $13,000.
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Question

Quizplus · Accepted Answer

Owner's equity can be calculated by subtracting total liabilities from total assets. Therefore, owner's equity in this scenario would be $10,000 - $3,000 = $7,000.

If Total Liabilities Are $3,000 and Total Assets Are $10,000