If Total Assets Equal $270,000 and Total Liabilities Equal $202,500,the

question 63

Multiple Choice

If total assets equal $270,000 and total liabilities equal $202,500,the total owners' equity must equal:

• A)$472,500.
• B)$67,500.
• C)$270,000.
• D)Cannot be determined from the information given.

---

Definitions:

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has rights and liabilities independent of those owners and can enter into contracts, sue, and be sued.

Sole Proprietorships

A business structure where a single individual owns and operates the business, bearing full responsibility for its debts and obligations.

Capital

Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.

Business Ownership

Refers to the legal possession and control over a business entity by an individual or group.