Using the accounting equation, what is Mary's Owner Equity as of December 31, 2020 given assets $760,000 and liabilities $240,000?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for your Bookkeeping Basics Test. Study with flashcards and multiple-choice questions, each offering hints and explanations. Ace your exam!

Multiple Choice

Using the accounting equation, what is Mary's Owner Equity as of December 31, 2020 given assets $760,000 and liabilities $240,000?

Explanation:
The accounting equation shows that Owner's Equity equals Assets minus Liabilities. So, with assets of 760,000 and liabilities of 240,000, subtract to get 760,000 − 240,000 = 520,000. Therefore, Mary's Owner Equity as of December 31, 2020 is 520,000. This represents the remaining ownership stake after all debts are accounted for.

The accounting equation shows that Owner's Equity equals Assets minus Liabilities. So, with assets of 760,000 and liabilities of 240,000, subtract to get 760,000 − 240,000 = 520,000. Therefore, Mary's Owner Equity as of December 31, 2020 is 520,000. This represents the remaining ownership stake after all debts are accounted for.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy