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Question
The excess of assets over liabilities represents the ______ of the owner.
Options
Capital
Drawing
Net profit
Gross profit
MCQ
Fill in the Blanks
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Solution
The excess of assets over liabilities represents the capital of the owner.
Explanation:
The Balance Sheet is not an account, but rather a statement of assets and liabilities. The right side displays assets, while the left side displays liabilities. The owner's capital is the excess of assets over obligations.
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