alleryA shop has assets of 18,700 and liabilities of 1,850. Its owner's equity is:
A18,500
B15,860
C16,850
D20,550
Answer & Solution
Correct answer: C. 16,850
1. Equity is also called net assets, meaning assets minus liabilities.
2. 18,700 minus 1,850 leaves 16,850.
3. Owner's equity is 16,850.
_Source: OpenStax Principles of Financial Accounting, Chapter 2, Introduction to Financial Statements._
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