Total assets of Douglas Fuhr Furniture Co. are $84,000 and the total liabilities are $37,000. What is the amount of the owner's equity?
A)$47,000
B)$121,000
C)$84,000
D)$6,000

Question

Quizplus · Accepted Answer

Owner's equity is the difference between total assets and total liabilities, so in this case, owner's equity would be:
Owner's Equity = Total Assets - Total Liabilities
Owner's Equity = $84,000 - $37,000
Owner's Equity = $47,000

Total Assets of Douglas Fuhr Furniture Co