What does owners' equity represent in a business?Question 1Answera.Business owners' share of the companyb.Company's assetsc.Company's liabilitiesd.Company's expenses
Question
What does owners' equity represent in a business?Question 1Answera.Business owners' share of the companyb.Company's assetsc.Company's liabilitiesd.Company's expenses
Solution
Owners' equity in a business represents the business owners' share of the company. It is the residual interest in the assets of the entity after deducting liabilities. In other words, it represents what the business owners would receive if all the company's assets were sold and all its debts were paid. This is why the correct answer is a. Business owners' share of the company.
Similar Questions
Stockholders, or owners' equity represents ______.Multiple choice question.the value of the corporate stock on the marketthe amount the owners owe in debtthe value of the business that belongs to ownersthe total value of what a business owns
Equity shares represent: A. Debt ownership in a company B. A fixed-rate interest in a company C. Ownership stake in a company D. Priority claim on company assets
An entity’s owners’ equity is one-third of its total liabilities. Its assets total $200,000. What is the amount of its owners’ equity?Question 2Select one:a.$50,000b.$66,667c.$150,000d.$300,000
Which financial statement typically includes owners' equity?Question 4Answera.Cash flow statementb.Balance sheetc.Income statementd.Statement of retained earnings
"Shareholder wealth" in a firm is represented by: A. the organisation's equity. B. the book value of the firm's assets less the book value of its liabilities. C. the number of people employed in the firm. D. the amount of salary paid to its employees.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.