Question:
A company's balance sheet has total assets of $400,000 and total equity of $350,000. What are the total liabilities?
i. $50,000
ii. $350,000
iii. $750,000
iv. Can't be determined
Posted By Admin @ September 03, 2022
A company's balance sheet has total assets of $400,000 and total equity of $350,000. What are the total liabilities?
i. $50,000
ii. $350,000
iii. $750,000
iv. Can't be determined
Based on the total assets and total equity of the company, we can calculate the liabilities to be $50,000.
The Accounting equation is as follows:
Assets = Equity + Liabilities
Given the assets and the equity therefore, you can solve for liabilities:
400,000 = 350,000 + Liabilities
Solving gives:
Liabilities = 400,000 - 350,000
= $50,000
In conclusion, option i is correct.
Find out more about the accounting equation at brainly.com/question/24401217.