Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 3 - No. 39)
Which statement is true regarding the owner's equity?
Owner's equity represents the debts of the business.
Owner's equity is the amount of capital contributed by the owners.
Owner's equity decreases when assets are acquired.
Owner's equity is always higher than liabilities
Explanation
Owner's equity is the monetary value of capital contributed by the owners.
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