Using the information below from the accounting records of Thomas Corporation, owners' claims to the company's resources amount to: $$\begin{array} { l r }
\text { Assets } & \$ 1,200,000 \
\text { Liabilities } & \$ 800,000 \
\text { Net income } & \$ 100,000 \
\text { Retained earnings } & \$ 250,000
\end{array}$$

Question

Using the information below from the accounting records of Thomas Corporation, owners' claims to the company's resources amount to: $$\begin{array} { l r } 
\text { Assets } & \$ 1,200,000 \
\text { Liabilities } & \$ 800,000 \
\text { Net income } & \$ 100,000 \
\text { Retained earnings } & \$ 250,000
\end{array}$$

Quizplus · Accepted Answer

Owners' claims to the company's resources, also known as equity, is calculated as Assets minus Liabilities: $1,200,000 - $800,000 = $400,000.

Using the Information Below from the Accounting Records of Thomas