The assets and liabilities of a company are $128,000 and $84,000, respectively. Owner's equity should equal

A) $212,000
B) $44,000
C) $128,000
D) $84,000

Question

The assets and liabilities of a company are $128,000 and $84,000, respectively. Owner's equity should equalA)  $212,000B)  $44,000C)  $128,000D)  $84,000

Sandile Nokuthula · Accepted Answer

Final Answer : B, Explanation :  Owner's equity is calculated by subtracting liabilities from assets.Therefore, owner's equity = assets - liabilities= $128,000 - $84,000= $44,000.Hence, the correct option is B.

The assets and liabilities of a company are $128,000 and $84,000, respectively. Owner's equity should equal

A) $212,000
B) $44,000
C) $128,000
D) $84,000

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