alleryThe balance sheet is the accounting equation in statement form: assets equal liabilities plus:
AOpening stock
BOwner's equity
COrder backlog
DOperating cost
Answer & Solution
Correct answer: B. Owner's equity
1. Everything owned was funded either by creditors or by owners.
2. Creditors' share is the liabilities side.
3. The owners' share is owner's equity.
_Source: OpenStax Principles of Financial Accounting, Chapter 2, Introduction to Financial Statements._
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