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  • Basics of Business Online Quiz
  • If assets are $50,000 & liabilities against the asset...
Multiple choice

If assets are $50,000 & liabilities against the assets are $20,000, then the owner’s equity is

  1. $40,000
  2. $70,000
  3. $20,000
  4. $30,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The accounting equation is Assets = Liabilities + Owner's Equity. Therefore, Owner's Equity = Assets - Liabilities. $50,000 - $20,000 = $30,000.

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