Asked by Shannon Bubar on May 11, 2024
Verified
A firm has $15 million in assets and $5 million in owner's equity.Therefore,the firm must also have $15 million in liabilities.
Owner's Equity
The residual interest in the assets of a business after deducting its liabilities, representing the owners' share of the company's resources.
Liabilities
Financial obligations or debts that a company or individual owes, which must be settled over time.
- Comprehend the relationship between a firm's assets, liabilities, and owner's equity.
Verified Answer
LL
Laila LohseMay 18, 2024
Final Answer :
False
Explanation :
The firm would have $10 million in liabilities, as assets ($15 million) minus owner's equity ($5 million) equals liabilities.
Learning Objectives
- Comprehend the relationship between a firm's assets, liabilities, and owner's equity.
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