Asked by Victoria Overbey on Jul 15, 2024
Verified
The assets and liabilities of a company are $128,000 and $84,000, respectively. Stockholders' equity should equal
A) $212,000
B) $44,000
C) $128,000
D) $84,000
Stockholders' Equity
The remaining interest in a company's assets after its liabilities are subtracted, signifying ownership stake.
Liabilities
Financial obligations or debts owed by a company to creditors, which must be settled over time through the transfer of assets, provision of services, or other economic benefits.
Assets
Resources owned or controlled by a business that are expected to produce economic value or benefits in the future.
- Acquire knowledge of the basic theories of assets, liabilities, and stockholders' equity and their contributions to the accounting equation.
Verified Answer
KK
Kennedy KallasJul 17, 2024
Final Answer :
B
Explanation :
Stockholders' equity is calculated as Assets minus Liabilities, which is $128,000 - $84,000 = $44,000.
Learning Objectives
- Acquire knowledge of the basic theories of assets, liabilities, and stockholders' equity and their contributions to the accounting equation.