Multiple Choice
A company has assets totaling $50,000 and equity of $20,000. What are their liabilities?
1. Introduction to Accounting
Fundamental Accounting Equation
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A company has liabilities of $25,000 and assets of $35,000. What is the company's equity?
A
$10,000
B
$20,000
C
$30,000
D
$60,000
Verified step by step guidance1
Understand the accounting equation: Assets = Liabilities + Equity.
Identify the given values: Assets = $35,000 and Liabilities = $25,000.
Rearrange the accounting equation to solve for Equity: Equity = Assets - Liabilities.
Substitute the given values into the equation: Equity = $35,000 - $25,000.
Calculate the result to find the company's equity.
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