you are examining the year - end balance sheet for your business. according to the information in the…

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\nassets\n - cash: $15,000\n - inventory: $2,000\n - equipment: $10,000\ntotal assets: $27,000\nliabilities\n - credit card balance: $3,500\n - long - term debt: $0\n - unearned revenues: $2,500\ntotal liabilities: $6,000\na. $6,000\nb. $15,000\nc. $21,000\nd. $27,000

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\nassets\n - cash: $15,000\n - inventory: $2,000\n - equipment: $10,000\ntotal assets: $27,000\nliabilities\n - credit card balance: $3,500\n - long - term debt: $0\n - unearned revenues: $2,500\ntotal liabilities: $6,000\na. $6,000\nb. $15,000\nc. $21,000\nd. $27,000

Answer

Explanation:

Step1: Recall accounting equation

Equity = Assets - Liabilities

Step2: Identify asset and liability values

Assets = $27,000, Liabilities = $6,000

Step3: Calculate equity

Equity = $27,000 - $6,000 = $21,000

Answer:

C. $21,000