Asked by kylah perry on Jun 05, 2024
Verified
Owner's equity can be described as
A) creditorship claim on total assets.
B) ownership claim on total assets.
C) benefactor's claim on total assets.
D) debtor claim on total assets.
Owner's Equity
The owner's residual interest in the assets of a business after deducting liabilities, representing the net assets owned by shareholders.
Creditorship Claim
This term does not technically exist in precise financial terminology as presented; it's possibly a mistaken combination of terms relating to claims or rights held by creditors.
Ownership Claim
The legal right or interest that an owner possesses in property, assets, or a company, granting the power to control or dispose of it.
- Comprehend the notion of ownership equity and its relationship with assets and liabilities.
Verified Answer
KB
Kyran BraganzaJun 10, 2024
Final Answer :
B
Explanation :
Owner's equity represents the ownership claim on total assets, which includes the residual interest in the assets of an entity after deducting liabilities. It is the difference between assets and liabilities and represents the net worth of the company. It is not a creditorship claim, benefactor's claim, or debtor claim.
Learning Objectives
- Comprehend the notion of ownership equity and its relationship with assets and liabilities.