What is equity? A. Cash from the business B. Liability of a business C. Owner’s claim on total assets D. Owner’s claim on total liabilities

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.