Question: Answer the following questions, in complete sentences. 1. What does the term owners equity mean with respect to the business overall? 2. If a business

Answer the following questions, in complete sentences.

1. What does the term owners equity mean with respect to the business overall?

2. If a business is owned by three partners, how many capital accounts are required on the books? Why?

3. What is the purpose of the drawings account?

4. If a business is owned by three partners, how many drawings accounts are required on the books? Why?

5. How is the equity value of a business calculated considering only the accounts in the owners equity section of the trial balance?

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