Under which condition is owners' equity positive?
A) Assets are greater than liabilities.
B) Assets and liabilities are equal.
C) Credits exceed debits.
D) Liabilities are greater than assets.
E) Debits exceed credits.

Question

Quizplus · Accepted Answer

Owners' equity represents the residual interest in the assets of the organization after deducting all liabilities. Therefore, if assets are greater than liabilities, owners' equity will be positive.

Under Which Condition Is Owners' Equity Positive