A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of owner's equity?

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Quizplus · Accepted Answer

Owner's equity is calculated as total assets minus total liabilities. Total assets are $22,000 (cash) + $16,000 (accounts receivable) + $50,000 (office equipment) = $88,000. Total liabilities are $17,000 (accounts payable). Therefore, owner's equity is $88,000 - $17,000 = $71,000.

A Company's Balance Sheet Shows: Cash $22,000, Accounts Receivable $16,000