The assets and liabilities of a company are $126,417 and $83,776, respectively. Owner's equity should equal a.$83,776 b.$42,641 c.$210,193 d.$126,417
The assets and liabilities of a company are $126,417 and $83,776, respectively. Owner's equity should equal a.$83,776 b.$42,641 c.$210,193 d.$126,417
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The assets and liabilities of a company are $126,417 and $83,776, respectively. Owner's equity should equal
a.$83,776
b.$42,641
c.$210,193
d.$126,417
Expert Solution
Step 1
Owners’ equity: The claims of owners on a company’s resources, after the liabilities are paid off, are referred to as stockholders’ equity. Two main components of owners’ equity are capital and retained earnings.
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