Asked by Growing with Hussein on May 29, 2024
Verified
If Total Assets are $68,000 and Total Capital is $30,000, Liabilities must equal:
A) $38,000.
B) $30,000.
C) $98,000.
D) $68,000.
Total Capital
The sum of a company's equity capital and debt, representing the total funds that a company can use for operations.
Total Assets
The sum of all current and non-current assets on a company's balance sheet, representing everything the company owns that has value.
- Develop an understanding of how liabilities modify the accounting equation structure.
Verified Answer
JD
Jaideep DhillonMay 29, 2024
Final Answer :
A
Explanation :
The accounting equation states that Assets = Liabilities + Equity (Capital). Given Total Assets of $68,000 and Total Capital of $30,000, Liabilities must be $68,000 - $30,000 = $38,000 to balance the equation.
Learning Objectives
- Develop an understanding of how liabilities modify the accounting equation structure.
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