On a balance sheet, if the assets are $760,000 and the liabilities are $530,000, what is the owner's equity?

Question

BlackTom AI · Accepted Answer

We start by restating the given data to ensure we’re solving the right problem: On a balance sheet, assets are 760,000 and liabilities are 530,000. The question asks for owner’s equity.

First, recall the fundamental accounting equation: Assets = Liabilities + Owner's Equity. Rearranging gives Owner's Equity = Assets − Liabilities.

Option 1: $250,000. This would imply Owner's Equity = 250,000, which would lead to Liabilities + Equity = 530,000 + 250,000 = 780,000, which does not match the provided assets of 760,000. Therefore this is inconsistent with the given numbers and can be ruled out.

Option 2: $1,280,000. If Owner's Equity were 1,280,000, then Liabilities (530,000) + Equity (1,280,000) would total 1,810,000, far exceeding the stated assets of 760,000. This clearly contradicts the basic accounting identity, so this is incorrect.

Option 3: $230,000. Applying the formula: Assets (760,000) − Liabilities (530,000) = 230,000. This aligns exactly with the calculation, and when you add Liabilities (530,000) to Equity (230,000), you get 760,000, matching the asset total. Therefore this option is consistent with the fundamental equation.

Option 4: $1,290,000. Adding Liabilities (530,000) and Equity (1,290,000) would give 1,820,000, which does not equal the stated assets of 760,000. This mismatch indicates an incorrect choice.

In summary, only the calculation Assets minus Liabilities yields a value that preserves the balance sheet equation with the given numbers, so the third option ($230,000) is the one that fits the scenario.

On a balance sheet, if the assets are $760,000 and the liabilities are $530,000, what is the owner's equity?单项选择题

类似问题

When a credit sale is omitted, the effect on the accounting equation is:

Which of the following statements correctly summarize what a balance sheet is?

On a statement of financial position, I would expect to see the following equation:

If A = $100, L = $25, what does OE =?

Assets minus Liabilities equals:

Which of the following correctly states the balance sheet equation?

The balance sheet equation states:

The balance sheet equation states that assets = liabilities owners’ equity. Which of the following best describes the logic behind this equation?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单