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

Answer: Option C

Solution(By Examveda Team)

Owner's claim on total assets is equity. Total claims include liabilities, which are all the debts that the business owes but has not yet paid out, as well as owners' equity, the value of the business that was granted by owner investment.

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