The difference between assets and liabilities of a business is called its:
A) net income.
B) owners' equity.
C) cost of capital.
D) current ratio.

Question

Quizplus · Accepted Answer

Net income represents the profit or loss generated by a business, and is not related to the difference between assets and liabilities. Cost of capital is the cost a business incurs to finance its operations. Current ratio is a measure of a business's liquidity. Owners' equity is the difference between a business's assets and liabilities, representing the amount of funds that belongs to the owners. Therefore, the best answer is B.

The Difference Between Assets and Liabilities of a Business Is