Asked by Gabriel Barrowman on Jun 06, 2024
Verified
If total Liabilities are $50,000 and Owner's Equity is $35,000, the total Assets must be:
A) $85,000.
B) $15,000.
C) $42,500.
D) $70,000.
Total Liabilities
Total liabilities are the combined debts and financial obligations a company owes to outside parties at any given time.
Owner's Equity
The residual interest in the assets of a business after deducting liabilities, often referred to as net assets.
Total Assets
The sum of all assets owned by a company, including both current and non-current assets.
- Cultivate an understanding of the principal factors of the accounting equation (Assets = Liabilities + Owner's Equity).
Verified Answer
JP
Janet PeinadoJun 13, 2024
Final Answer :
A
Explanation :
The total assets are calculated by adding total liabilities and owner's equity together, which in this case is $50,000 + $35,000 = $85,000.
Learning Objectives
- Cultivate an understanding of the principal factors of the accounting equation (Assets = Liabilities + Owner's Equity).