Asked by Nathan Tsung on Jul 15, 2024

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On the balance sheet, owner's equity is

A) added to assets and the two are equal to liabilities
B) added to liabilities and the two are equal to assets
C) subtracted from liabilities and the net amount is equal to assets
D) equal to the total of assets and liabilities

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or owners.

Balance Sheet

A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholders' equity at a specific point in time, offering a basis for computing rates of return and evaluating its capital structure.

Assets

Resources owned or controlled by a business or an individual that are expected to produce future economic value.

  • Recognize and categorize various account types (assets, liabilities, equity, revenues, and expenses) and comprehend their functions within financial accounting.
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Verified Answer

DD
dache dortchJul 22, 2024
Final Answer :
B
Explanation :
Owner's equity, when added to liabilities, equals the total assets. This is based on the accounting equation: Assets = Liabilities + Owner's Equity.