Answer to Question #241180 in Accounting for samantha

Question

SFP Question 1

 

Current Assets= 880,000 pesos

Noncurrent Assets= 1,200,000 pesos

 

If the business entity only gets resources from equity financing, how much is the total value of Owner's Equity?

Answer 1

Owner's Equity= Total Assets-Total Liabilities

Total Assets: 880,000 pesos+ 1,200,000 pesos=2,080,000 pesos

Total Liabilities: If the business is getting resources using equity financing, it implies that it does not owe anyone, hence 0 liabilities.

Owner's Equity=2,080,000-0

Owner's Equity=2,080,000 pesos