Accounting for IGCSE & O level - Final Statements (Section 11 - No. 4)
If a company has assets of $100,000 and liabilities of $20,000, then the owner's equity would be?
$20,000
$80,000
$100,000
$120,000
Paaiškinimas
The accounting equation is: Assets = Liabilities + Equity, so Equity = Assets - Liabilities, thus $100,000 - $20,000 = $80,000