Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 12 - No. 38)
What does 'owner's equity' represent?
The total debts of a business.
The owner's investment in the business plus accumulated profits less drawings.
The total assets of the business.
The amount of cash the business has.
Explanation
Owner's equity represents the owner's stake or claim on the assets of the business.
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