BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Balance the equation. Assets = $4, 000; Owner’s Equity = $2, 500. What must liabilities equal?
A
$4, 000
B
$2, 500
C
$6, 500
D
$1, 500
Explanation: 

Detailed explanation-1: -Liabilities = Assets – Shareholder’s Equity To determine the total amount of liabilities, find the amount of total assets and equity on your balance sheet.

Detailed explanation-2: -As a result, we can re-arrange the formula to read liabilities = assets-equity. Thus, the value of a firm’s total liabilities will equal the difference between the values of total assets and shareholders’ equity.

Detailed explanation-3: -The main accounting equation is: Assets = Liabilities + Equity. Together, they make up a company’s balance sheet.

Detailed explanation-4: -Answer and Explanation: The answer is 3. 60, 000.

There is 1 question to complete.