APICS CPIM Exam - Topic 1 Question 121 Discussion

Actual exam question for APICS's CPIM exam

Question #: 121
Topic #: 1

[All CPIM Questions]

Owner's equity is:

ADifference between revenues and expenses

DDifference between assets and liabilities

BDifference between expenses and liabilities

CDifference between assets and revenues

Show Suggested Answer

Suggested Answer: D

by Eliseo at Jan 27, 2026, 06:06 PM

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Paul

2 days ago

Yup, that's exactly it!

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Chantell

7 days ago

Wait, isn't it just assets minus liabilities?

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Mozell

12 days ago

Totally agree, it's crucial for understanding net worth!

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Jesusita

18 days ago

Owner's equity is the owner's claim on assets.

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Aretha

23 days ago

Wait, is it the amount of money the owner can take out of the business?

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Alpha

28 days ago

Haha, I always get this mixed up with the owner's debt. Gotta love accounting!

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Silvana

1 month ago

Isn't it the capital that the owner has invested in the business?

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Jolanda

1 month ago

I think it's the total assets minus the total liabilities of the business.

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Noel

1 month ago

The owner's equity is the net worth of the business, right?

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Marisha

2 months ago

I vaguely recall that owner's equity can fluctuate based on profits and losses, but I can't remember how that affects the overall balance sheet.

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Bernardine

2 months ago

I feel like owner's equity can include things like retained earnings and additional paid-in capital, but I might be mixing it up with liabilities.

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Anna

3 months ago

I remember practicing a question about the accounting equation, and I think owner's equity is part of that equation, right?

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Cristy

3 months ago

I think owner's equity represents the owner's claim on the assets after liabilities are deducted, but I'm not entirely sure about the specific components.

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Theola

3 months ago

No problem, I've got this. Owner's equity is the residual claim that the owner has on the company's assets after subtracting the liabilities. I'll show the calculation step-by-step.

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Ardella

3 months ago

Okay, let me think this through. Owner's equity has to do with the net worth of the business from the owner's perspective. I'll need to walk through the formula to answer this correctly.

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Tyra

3 months ago

Ah, owner's equity - that's one of the key components of the balance sheet, right? I'm confident I can explain how it's determined and what it represents.

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Denny

3 months ago

Hmm, owner's equity... I'm a bit unsure about the exact meaning of that term. I'll need to review my notes to make sure I understand it properly.

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Loreen

4 months ago

I think this is asking about the owner's stake in the business. I'll need to recall the definition of owner's equity and how it's calculated.

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