Question

two technicians are discussing balance sheets. technician a states the difference between total assets and total liabilities is known as equity. technician b states that liabilities include anything others owe to you related to the operation of the business. who is correct?
o technician a
o technician b
o neither technician
o both technicians

Explanation:

Technician A is correct as the accounting - equation states that Equity = Total Assets - Total Liabilities. Technician B is incorrect because liabilities are what a business owes to others, not what others owe to the business.

Answer:

Technician A