The Owners' Equity of a Business Is Equal To

question 103

Multiple Choice

The owners' equity of a business is equal to:

• A)revenues minus expenses.
• B)assets minus liabilities.
• C)assets plus liabilities.
• D)paid-in capital plus assets.

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Definitions:

Expense Incurred

A cost that has been realized during the performance of business activities, pending payment or already paid.

Revenue Earned

Income received by a company from its business activities, such as sales of products or services.

Mortgage Payable

A liability account on the balance sheet representing the amount owed by a company or individual for the property's mortgage.

Asset

Resources owned or controlled by a business that are expected to provide future economic benefits, including tangible and intangible items.