8/28 Owner's Equity

What is owner's equity considered to be for a business?

• A measure of total liabilities.

• A measure of total assets.

• A measure of the overall health of a business.

• A measure of daily profits.

How is owner's equity calculated for a small, uncomplicated business?

• Assets + Liabilities

• Assets - Liabilities

• Liabilities - Assets

• Assets / Liabilities

On Day 1 of starting a business, if you invest $10,000 of your own money into the business bank account and have no other assets or liabilities, what is the owner's equity?

• $0

• $5,000

• $10,000

• $20,000

How often do small businesses typically calculate their owner's equity?

• Daily

• Weekly

• Once a year

• Once a month

What does a larger amount of interest to be repaid on a loan indicate about a business's owner's equity and financial health?

• It leads to an increase in owner's equity and improved financial health.

• It leads to a smaller reduction in owner's equity and better financial health.

• It leads to a bigger reduction in owner's equity and less healthy financial standing.

• It has no impact on owner's equity or financial health.