How can you calculate owners' equity?
A) Cost of goods sold minus net sales
B) Total liabilities plus total assets
C) Total assets minus total liabilities
D) Total assets minus cost of goods sold
E) Gross sales minus (customer returns and customer allowances)

Question

Quizplus · Accepted Answer

Owners' equity is the residual claim on the assets of a business after all liabilities have been paid off. Therefore, it can be calculated by subtracting total liabilities from total assets.

How Can You Calculate Owners' Equity