Which of the following is an example of an owner's equity?
A) A customer pays $3000 for a piece of equipment.
B) An owner pays $7000 for supplies and equipment.
C) An individual starts a new business and puts up $5000 of their own money to get started.
D) The owner is sued and $2000 is paid for retaining an attorney.

Question

Quizplus · Accepted Answer

Owner's equity refers to the owner's investment in the business. When an individual starts a new business and invests their own money, it increases the owner's equity.

Which of the Following Is an Example of an Owner's