Register
Using the accounting equation (A = L + OE) calculate the amount of equity the company has if your assets are worth $10,000 total, while your debt is $5,000.
162k views
3 votes
Using the accounting equation (A = L + OE) calculate the amount of equity the company has if your assets are worth $10,000 total, while your debt is $5,000.

User ElGeekalpha
by
3.9k points

1 Answer

6 votes

Answer:

$5,000

Step-by-step explanation:

The Equation (A = L + OE) is the accounting equation that guides in preparing a balance sheet. The equation in full is

Assets = Liabilities + Owners Equity.

In this case

Assets = $10,000 , liabilities = $5,000, equity = ?

$10,000 = $5000 + Equity

Equity = $10,000 - $5,000

Equity = $5,000

User Deleon
by
4.2k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

4.3m questions

5.6m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his
Andrew doesn’t want to spend a lot of money on student loans, and does not qualify for grants. what is his best option for affording a bachelors degree
The method of appraisal in which the appraiser estimates the replacement cost of the building, deducts depreciation, and adds the value of the site is:________
Link Copied!