#1 of 3 Liabilities and owner's equity of a company are $150,000 and $30,000, respectively. Determine...

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Answer 1

Answer #1

As per accounting equation total assets is equal to total of liabilities plus total equity
This indicates that assets are partially financed with liabilities and partially by equity

Assets	Liabilities + Owner's equity
Assets	150,000+30,000
Assets	$180,000

Owner's equity can be best defined as right of owners
Owner's equity indicate the proportion of fund invested by owner and thus indicates their right in the business

Answer 2

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