Definition of Owner's Equity
Owner's equity is one of the three main sections of a sole proprietorship's balance sheet and one of the components of the accounting equation: Assets = Liabilities + Owner's Equity.
Owner's equity represents the owner's investment in the business minus the owner's draws or withdrawals from the business plus the net income(or minus the net loss) since the business began.
Owner's equity is viewed as a residual claim on the business assets because liabilities have a higher claim. Owner's equity can also be viewed (along with liabilities) as a source of the business assets.
Example of Owner's Equity
If a sole proprietorship's accounting records indicate assets of $100,000 and liabilities of $70,000, the amount of owner's equity is $30,000.
Due to the cost principle (and other accounting principles) the amount of owner's equity should notbe considered to be the fair market value of the business.
Definition of Liability
A liability is an obligation arising from a past business event. It is reported on a company's balance sheet.
Liabilities are also part of the basic accounting equation: Assets = Liabilities + Stockholders' Equity. Liabilities are often viewed as claims against the company's assets. However, liabilities can also be viewed as sources of the company's assets.
Examples of a Liability
Examples of a liability include:
accounts payable
loans payable
wages payable
interest payable
customer deposits
deferred revenues
Explain in details the essential Characteristics, Definition, Measurement values and of as follows: A. Owner’s Equity...
4. Which of the following is not one of the essential characteristics of a liability? a. Result from past transactions or events b. Present sacrifice of economic benefits. c. Arise from present obligations (to transfer goods or provide services) to other entities. d. All the above are characteristics of liabilities. e. None of the above are characteristics of liabilities It is the future sacrifice of economic benefits Answer is B. Can you explain please?
3. Following device characteristics are given to you from measurement in the lab Measurement VGS VDS VSB number (v) v(v) -2.5 -2.5 0 V) (V) ID (HA) Operation Region? 84.375 0.0 0.7 -0.80 -2.02.5 0 -2.5 -2.5-1 -2.5-1.5 0 -2.5 -0.80 -56.25 -72.0 -80.625 -66.56 7 a. Is the measured transistor a PMOS or an NMOS device? Explain your answer b. Determine the operation region (cut-off, linear, saturated) for every measurement (1-7)
CHAPTER 7 QUESTIONS 1. What is equity? What are some characteristics of equity? a. Explain the following statement: "Whereas a bond contains a promise to pay interest, common stock provides an expectation but no promise of dividends." b. What is the significance of the par value of a preferred stock? Of a common stock? 2. How are stock prices determined? 3. How are stock returns determined? What two components are included in a stock's return? 4. What factors affect stock...
13. Explain this statement: An Enzyme follows Michaelis-Menten kinetics, meaning explain the characteristics of a M-Menzyme and the type of mechanism it uses. Also, include definitions of Km and Vmax. (This is that synthesis question.) 14. Compare and contrast E-S interactions with P-L interactions.
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Name the characteristics of potential applications for which Coordinate Measurement Machines are most suitable. Python program def main (): num = 0 show_me(num) def show_me(arg): if arg < 10: show_me(arg + 1) else: print(arg)main() What is the output of the above code and explain in detail. L_1 = {w belongsto {a, b}^*: n_a(W) = n_b(W)} design NPDAthat accepts.
The accounting equation for Landscape Enterprises is as follows: Assets Liabilities $540,000 + Stockholders' Equity. $540,000 $1,080,000 + If the company now pays employee wages for $90,000, the accounting equation will change to: Select one: A. Assets $1,170,000 = Liabilities $540,000 Stockholders' Equity $630,000 + B. Assets $990,000 - Liabilities $540,000 Stockholders' Equity $450,000 C. Assets $1,170,000 = Liabilities $630,000 Stockholders' Equity $540,000 + O D. Assets $990,000 = Liabilities $450,000 Stockholders' Equity $540,000 +
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02 (a) ) In measurement, what is meant by a problem of definition? Give an (ii) Explain what is meant when two independent measurements are said to (iii) Simple methods for estimating errors generally over-estimate the size example. have a significant discrepancy. of an uncertainty. Explain why combining errors in quadrature is more accurate. (b) A circular aircraft window made from polycarbonate is clamped at its edge and will experience...
Please explain in details. Thank you
Calculate the missing cash at bank account balance from these statement of financial position items. Equity $5 800; accounts receivable $890: accounts payable $450; inventory $360; loan to another business $1 400. Answers: A. $6 300 B. $4 900 C. $3 600 D. $5 400 The amount of rent expense reported on the income statement is 1 Answers: A. an increase in net income B. the amount of cash paid for rent in the...
8. On January 2, 2020, Kuehler Corporation's stockholders' equity accounts were as follows: Common Stock, $1 par $100,000 Additional paid-in-capital 350,000 Retained Earnings 225,000 Kuehler's assets and liabilities had book values equal to fair values except for inventory, land and building which were undervalued by $50,000, $75,000, and $40,000, respectively. On January 2, 2020, Davis Corp. purchased all of Kuehler's common stock for $900,000 cash. There was no contingent consideration in the agreement to combine. Required: Prepare all necessary consolidation...
Anyone know these values and can explain how to get them?
Problem 2-6A Condensed balance sheet and income statement data for Sheffield Corp. are presented as follows Sheffield Corp Balance Sheets December 31 Assets Cash Receivables (net) Other current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities and Stockholder Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity 2017 2016 83,300 103,300 62,000 523,300 $803,040 $31,140 23,140 75,300 86,300 60,000 483,300 728,040 s'...