QuestionAugust 8, 2025

At the end of an accounting period, a company's total assets equaled 472,000 and liabilities equaled 252,000 .How much was the owner's equity? Owner's Equity= [?]

At the end of an accounting period, a company's total assets equaled 472,000 and liabilities equaled 252,000 .How much was the owner's equity? Owner's Equity= [?]
At the end of an accounting period, a
company's total assets equaled 472,000
and liabilities equaled 252,000 .How
much was the owner's equity?
Owner's Equity= [?]

Solution
4.7(250 votes)

Answer

\220,000 Explanation 1. Use the Accounting Equation The accounting equation is **Assets = Liabilities + Owner's Equity**. 2. Rearrange to Solve for Owner's Equity Rearrange the equation to find Owner's Equity: **Owner's Equity = Assets - Liabilities**. 3. Substitute Values Substitute the given values: Owner's Equity = \472,000 - \252,000. 4. Calculate Perform the subtraction: Owner's Equity = \220,000.

Explanation

1. Use the Accounting Equation<br /> The accounting equation is **Assets = Liabilities + Owner's Equity**.<br /><br />2. Rearrange to Solve for Owner's Equity<br /> Rearrange the equation to find Owner's Equity: **Owner's Equity = Assets - Liabilities**.<br /><br />3. Substitute Values<br /> Substitute the given values: Owner's Equity = \$472,000 - \$252,000.<br /><br />4. Calculate<br /> Perform the subtraction: Owner's Equity = \$220,000.
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