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?

Question

Quizplus · Accepted Answer

Owner's equity is calculated by subtracting liabilities from assets. Here, assets total $88,000 ($22,000 + $16,000 + $50,000) and liabilities are $17,000, making the owner's equity $71,000 ($88,000 - $17,000).

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