If assets are $365,000 and equity is $120,000,then liabilities are:

A) $120,000.
B) $245,000.
C) $365,000.
D) $485,000.
E) $610,000.

Question

If assets are $365,000 and equity is $120,000,then liabilities are:A) $120,000.B) $245,000.C) $365,000.D) $485,000.E) $610,000.

Paige Queen · Accepted Answer

Final Answer : B, Explanation :  The basic accounting equation is: Assets = Liabilities + Equity.Therefore, Liabilities = Assets - Equity.Substituting the given values, we get:Liabilities = $365,000 - $120,000 = $245,000.So, the answer is B.

If assets are $365,000 and equity is $120,000,then liabilities are:

A) $120,000.
B) $245,000.
C) $365,000.
D) $485,000.
E) $610,000.

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