Asked by Esmeralda Pimentel on May 10, 2024
Verified
Krammer Company has liabilities equal to one-fourth of the total assets. Krammer's owner's equity is $45,000. Using the accounting equation, what is the amount of liabilities for Krammer?
Owner's Equity
The net worth of an owner in a company, calculated as the difference between the company's assets and liabilities.
Liabilities
Financial obligations or debts of a business that are due to be paid to creditors in the future.
- Comprehend the relationship between a company's liabilities and its assets including owner's equity.
Verified Answer
JY
Jessica YilmazMay 11, 2024
Final Answer :
Assets = Liabilities + Owner's Equity4x = x + $45,0003x = $45,000x = $15,000 in liabilities
Learning Objectives
- Comprehend the relationship between a company's liabilities and its assets including owner's equity.