Under Which Condition Is Owners' Equity Positive

question 179

Short Answer

Under which condition is owners' equity positive?
Assets are greater than liabilities.
Assets and liabilities are equal.
Credits exceed debits.
Liabilities are greater than assets.
Debits exceed credits.

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Definitions:

Credit Balance

A situation in an account where the total credits exceed the total debits, indicating an amount owed to the account holder or a surplus in a liability account.

Common Stock

A type of equity security that represents ownership in a corporation, with shareholders entitled to vote on corporate matters and receive dividends.

Acquisition

The process by which a company purchases most or all of another company's shares in order to take control of it.

Fair Value

The financial gain from selling an asset or the financial outlay for relocating a liability in an orderly market activity on the designated measurement day.