How can you calculate owners' equity?
A) Total assets minus cost of goods sold
B) Cost of goods sold minus net sales
C) Gross sales minus (customer returns and customer allowances)
D) Total assets minus total liabilities
E) Total liabilities plus total assets

Question

Quizplus · Accepted Answer

Owners' equity is calculated by subtracting total liabilities from total assets. This represents the residual interest in the assets of the entity after deducting liabilities.

How Can You Calculate Owners' Equity