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If the assets of a business are 107K and the owner's equity is 75K does the owner's investment equal 182K?
Wiki User
∙ 8y ago
In pure accounting terms Assets - Liabilities = Owner's equity. That means that if you have 107k of assets and 75k of OE, you have 32K of liabilities.
Good accounting answer...in general terms, count up what you own (Assets), subtract what you owe(liabilities) and that is what you are worth (equity), so if you own 107K and are worth 75K, then you owe 32K.
I agree with the above, and the basics of Accounting provided.
But it addresses what the owners equity is -- that is the amount of value on the companies books after all claims are made/paid.
The question asks what is the owners investment equal to. That is almost always different than owners equity. The owners investment is viewed from the owners side bookkeeping, not the business side. It is entirely possible to buy stock in a company for say $100...that is the owners investment....it doesn't change based on anything to do with the books or operations of the company - since he isn't investing more (or taking anything out - barring dividends and such for the moment).
Say then the company has good (or bad) fortunes (or the stock market and investment marketplace changes)...and he sells his investment for a different amount...the difference is the gain or loss on the owners investment.
The owners equity portion of the business books could have gone up, down (or stayed the same). Same holds true if it was 100% of the biz instead of just some portion of stock in it.
So in the question above, we don't know what the owners investment is, nor can we determine it from the companys books and records.
Wiki User
∙ 8y ago
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When owners invest money in their business the effect on the accounting equation is that the investment increases what?
increase assets and increase owners equity
Is owners equity equal to the business liabilities less the business assets?
No. Owners Equity is equal to Business Assets less Business Liabilities.
Is a factory owners equity or asset?
Investment from factory owners is equity and it is shown in balance sheet of business.
Are owners equity and debtor fall under asset?
Owner equity is liability for business falls under liability or equity side while debters are current assets of business and fall under current assets.
Can assets be greater then liabilities and owners equity?
No. Assets = Liabilities + Equity Always.
If the liablilities owned by a business total 300000 and owners equity is equal to 300000 then will the assets also total 300000?
No. Assets = Liabilities + Owner's Equity = 300,000 + 300,000 = 600,000
What are some examples of owner's equity?
Owner's equity shows the owners investments minus their withdrawals from the business. Basically it is the assets minus the liabilities.
Why Liability equals Assets?
Assets- Liabilities = Owners Equity :)
Why asset equal libilities plus owner equity?
It is the basic accounting equation because liabilities and owner equity both is required to return back to it's owners by business and business must have the same amount of assets to pay all back at any time that's why assets are equal with liabilities and owners equity.
Stockholders equity consists of?
The balance sheet quantity of a company's common stock equity. This quantity equals total assets less liabilities, preferred stock, and intangible assets such as goodwill. Stockholder's equity consists of contributed capital and retained earnings. The quantity of stockholder's equity indicates how much the company would have left over in assets if it were to go out of business immediately. As most companies are expected to grow and generate more profits in the future, they end up being worth far more in the marketplace than the value of their stockholders' equity. This is why stockholder's equity is more important to value investors than growth investors. Stockholder's equity is often called the book value of a company
How do you calculate net income from assets and liBILITIES?
assets - liabilities = owners equity.
Assets plus liabilities equals what?
Owners Equity Also Net Assets
