Business FinancesQuestion 1140 of 1632
A contractor's balance sheet shows total assets of $500,000 and total liabilities of $320,000. What is the owner's equity?
a.$820,000
b.$180,000
c.$500,000
d.$320,000
Explanation
Owner's equity = total assets - total liabilities = $500,000 - $320,000 = $180,000. Equity is the owner's residual claim after all debts.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)