The assets of a company total $700,000; the liabilities,$200,000.What are the total claims of the owners?
A)$900,000
B)$700,000
C)$500,000
D)$200,000
E)It is impossible to determine unless the amount of owners' investment is known.

Question

Quizplus · Accepted Answer

The total claims of the owners are equal to the assets minus liabilities, which is $700,000 - $200,000 = $500,000. Therefore, the answer is (C).

The Assets of a Company Total $700,000; the Liabilities,$200,000