Asked by Heidi Canaveral on May 30, 2024
Verified
Selected financial statement accounts are as follows. How much is the firm's ending equity? 
A) $103,000
B) $97,000
C) $19,000
D) $85,000
Ending Equity
The value remaining for shareholders after subtracting liabilities from assets, evaluated at the end of an accounting period.
Financial Statement
A formal record of the financial activities and position of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.
- Acquire insight into the association between sales, EBIT, net income, dividends, and modifications in equity value.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
B
Explanation :
We can use the accounting equation: Assets = Liabilities + Equity.
Given information:
Assets = $175,000
Liabilities = $78,000
We can calculate equity as follows:
Equity = Assets - Liabilities
Equity = $175,000 - $78,000
Equity = $97,000
Therefore, the firm's ending equity is $97,000. Option B is the correct answer.
Given information:
Assets = $175,000
Liabilities = $78,000
We can calculate equity as follows:
Equity = Assets - Liabilities
Equity = $175,000 - $78,000
Equity = $97,000
Therefore, the firm's ending equity is $97,000. Option B is the correct answer.
Learning Objectives
- Acquire insight into the association between sales, EBIT, net income, dividends, and modifications in equity value.