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The FastForward Company balance sheet shows cash $5,000, accounts receivable $7,000, office equipment $3,000, and accounts payable $4,000. What is the amount of equity?


$15,000

$12,000

$19,000

Respuesta :

19’000 correct me if i’m wrong
kapoorprachi783

The correct answer is option C) $12,000.

What is the amount of equity?

The equity of a company, or shareholders' equity, is the net difference between a company's total assets and its total liabilities. A company's equity is used in fundamental analysis to determine its net worth.

Given:

  1. FastForward Company balance sheet shows cash = $5,000
  2. Accounts receivable = $7,000
  3. Office equipment = $3,000
  4. Accounts payable = $4,000.

Total equity = 5000 + 7000 + 4000 - 3000

= $12000

What is an equity example?

Equity is the ownership of any asset after any liabilities associated with the asset are cleared. For example, if you own a car worth $25,000, but you owe $10,000 on that vehicle, the car represents $15,000 equity. It is the value or interest of the most junior class of investors in assets.

Learn more about Equity here: brainly.com/question/24914390

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