When reviewing the Balance Sheet for Preferred Pet Care,Inc. ,a mobile small animal care business,Julian noted the following information: Company assets totaling $3.5 million,and liabilities totaling $1.3 million.On paper,the net worth owner's equity)for this business = ____________.
A)$2.2 million.
B)$4.8 million.
C)$3.5 million.
D)$0.2 million.

Question

Quizplus · Accepted Answer

To find the net worth or owner's equity, we need to subtract the total liabilities from the total assets. 
Net worth = Assets - Liabilities 
Net worth = $3.5 million - $1.3 million 
Net worth = $2.2 million 
Therefore, the answer is choice A) $2.2 million.

When Reviewing the Balance Sheet for Preferred Pet Care,Inc