Cash from the business
Liability of a business
Owner's claim on total assets
Owner's claim on total liabilities
Answer is Right!
Answer is Wrong!
The correct answer is: C. Owner’s claim on total assets.
Equity is the owner’s claim on the total assets of a business. It is the difference between the total assets and the total liabilities of a business. Equity is also known as net worth or owner’s equity.
Option A is incorrect because cash is a type of asset.
Option B is incorrect because liability is a type of financial obligation.
Option D is incorrect because total liabilities is the sum of all the liabilities of a business.