Q45
What is equity?
A.
Cash from the business
B.
Liability of a business
C.
Owner's claim on total assets
AnswerD.
Owner's claim on total liabilities
Answer: Option C
Solution
Answer: Option C
Solution:
Owner's claim on total assets is equity. Total claims include liabilities, which are all the debts that the business owes but has not yet paid out, as well as owners' equity, the value of the business that was granted by owner investment.