If total liabilities were subtracted from total assets, the residual value would be
A) revenues.
B) owners' equity.
C) net income.
D) working capital.
E) expenses.

Question

Quizplus · Accepted Answer

Subtracting total liabilities from total assets results in the residual value, also known as the shareholders' equity or owners' equity. This represents the portion of the assets that the owners of the company own outright, after all external liabilities are paid off.

If Total Liabilities Were Subtracted from Total Assets, the Residual