If the assets owned by a business total $50,000 and liabilities total $30,000, then owner's equity totals $80,000.

Name: If the assets owned by a business total $50,000 and liabilities total $30,000, then owner's equity totals $80,000.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

This statement is incorrect. The formula for calculating owner's equity is: assets - liabilities = owner's equity. Using the figures given, the calculation would be: $50,000 - $30,000 = $20,000, not $80,000.

If the Assets Owned by a Business Total $50,000 and Liabilities