Chase invests $5,000 of his own money in his new auto detailing business. He then obtains a loan and builds a small workshop in his backyard for $10,000. At this point assets are ____, liabilities are ____, and owners' equity is ____.
A) $10,000; $5,000; $15,000
B) $15,000; $10,000; $5,000
C) $5,000; $0; $5,000
D) $15,000; $10,000; $0
E) $10,000; $5,000; $5,000

Question

Quizplus · Accepted Answer

Assets equal the total value of what the business owns ($5,000 + $10,000 = $15,000), liabilities are the amount owed from the loan ($10,000), and owner's equity is the amount invested by the owner ($5,000).

Chase Invests $5,000 of His Own Money in His New