Owner's equity is equal to ________.
A)brand assets minus brand liabilities
B)brand assets divided by brand liabilities
C)company assets minus company liabilities
D)company assets divided by company liabilities
E)company liabilities minus brand liabilities

Question

Quizplus · Accepted Answer

Owner's equity is the residual interest in the assets of a company after deducting liabilities. Therefore, it is calculated by subtracting the total liabilities of the company from its total assets, which is represented by choice C - company assets minus company liabilities. Choices A and B are incorrect because they refer to brand assets and brand liabilities, which are not equivalent to total assets and liabilities of a company. Choices D and E are also incorrect as they do not properly calculate owner's equity.

Owner's Equity Is Equal to ________