Asked by Irena Zapotny on Feb 18, 2024
Verified
Sandy's balance sheet is partially completed.However,she has total assets of $120,000 and total shareholders' equity of $15,000.Her liabilities should total $105,000.
Liabilities
Economic obligations of the company, such as money owed to lenders, suppliers, and employees.
- Ability to calculate missing values: The question involves calculating the missing value of liabilities based on the given information of total assets and total shareholders' equity.
- Knowledge of the relationship between assets, liabilities, and shareholders' equity: The question highlights the relationship between assets, liabilities, and shareholders' equity, where assets minus liabilities equals shareholders' equity.
- Understanding the components of a balance sheet: The question requires knowledge of the different sections of a balance sheet, including assets, liabilities, and shareholders' equity.
Verified Answer
HA
Hamse Ahmed fiin
Feb 18, 2024
Final Answer :
True
Explanation :
Total assets minus total liabilities equal total shareholders' equity. Therefore, if Sandy's total assets are $120,000 and her total shareholders' equity is $15,000, her liabilities must total $105,000 ($120,000 - $15,000 = $105,000).
Learning Objectives
- Ability to calculate missing values: The question involves calculating the missing value of liabilities based on the given information of total assets and total shareholders' equity.
- Knowledge of the relationship between assets, liabilities, and shareholders' equity: The question highlights the relationship between assets, liabilities, and shareholders' equity, where assets minus liabilities equals shareholders' equity.
- Understanding the components of a balance sheet: The question requires knowledge of the different sections of a balance sheet, including assets, liabilities, and shareholders' equity.
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