At the end of an accounting period, a
company’s total assets equaled ,
and liabilities equaled .
How much was the owner’s equity?
Owner’s Equity

To find the owner’s equity, you can use the accounting equation: Total Assets = Total Liabilities + Owner’s Equity. By rearranging this equation, you can calculate Owner’s Equity as follows:

Owner’s Equity = Total Assets - Total Liabilities.

Substituting the values provided, we get:

Owner’s Equity = .

So, Owner’s Equity .

Now your company’s financial health is all clear and ready for some fun financial strategies!

Understanding the concept of owner’s equity is crucial for any entrepreneur. It’s not just a number on a balance sheet; it represents the owner’s stake in the business after all debts are paid. Imagine it as the “ownership pie” – the bigger the slice you have after liabilities are accounted for, the more you stand to gain when your business flourishes! So, keep an eye on that equity slice; it’s worth the effort.