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Your restaurant has assets of $64,342 and liabilities of $47,266. What is the equity of your business?

2 Answers

3 votes

Answer:

c. $17,076

Step-by-step explanation:

Your restaurant has assets of $64,342 and liabilities of $47,266. What is the equity-example-1
User Muhuk
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2 votes

Answer:

Equity of the business= $17,076.

Step-by-step explanation:

Equity as used in business is used to refer to the difference between the worth of a business (its assets) and what the business owes (debts and liabilities).

In other words, total equity refers to the value which is left in the company after the total liabilities must have been subtracted from the total assets.

The formula to calculate total equity is given below:

Equity = Assets - Liabilities

Therefore to calculate the equity above, we have:

Equity = $64,342 - $47,266

Equity = $17,076.

User Felix Lapalme
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