PRC-1 · Chapter 1 · Question 1 of 100
At the end of the financial year, the total assets of 'Apex Technologies' are valued at Rs. 5.4 million, while its total liabilities stand at Rs. 2.1 million. According to the accounting equation, what is the value of the owner's equity?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 3.3 million
Explanation
According to the fundamental accounting equation, assets are always equal to liabilities plus capital. Therefore, the owner's equity is calculated by subtracting total liabilities from total assets, which results in Rs. 3.3 million.
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