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You are examining the year-end balance sheet for your business. According to the information in the Balance Sheet.what is your equity in the business? Balance Sheet for year ending December 31 Assets Cash: 10,000 2,000 Equipment: 5,000 Total Assets: 17,000 Liabilities Credit card balance: 2,500 Long-term debt: 0 Unearned revenues: 3,500 Total Liabilities: 6,000 11,000 10,000 17,000 7,000

Question

You are examining the year-end balance sheet for your business.
According to the information in the Balance Sheet.what is your equity in the business?
Balance Sheet for year ending December 31
Assets
Cash: 10,000
 2,000
Equipment: 5,000
Total Assets: 17,000
Liabilities
Credit card balance: 2,500
Long-term debt: 0
Unearned revenues: 3,500
Total Liabilities: 6,000
 11,000
 10,000
 17,000
 7,000

You are examining the year-end balance sheet for your business. According to the information in the Balance Sheet.what is your equity in the business? Balance Sheet for year ending December 31 Assets Cash: 10,000 2,000 Equipment: 5,000 Total Assets: 17,000 Liabilities Credit card balance: 2,500 Long-term debt: 0 Unearned revenues: 3,500 Total Liabilities: 6,000 11,000 10,000 17,000 7,000

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Answer

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YosefElite · Tutor for 8 years

Answer

A

Explain

In financial accounting, owner's equity refers to the residual interest in the assets of a company after deducting the liabilities. In the context of the given information, the equation to calculate equity would be Equity = Total Assets - Total Liabilities. Considering the numbers provided in the balance sheet: Equity = $17,000 (total assets) - $6,000 (total liabilities) = $11,000.<br />Therefore, Option A, $11,000, is the correct equity value for this business according to the year-end balance sheet.
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