If liabilities have a balance of $10,000 and stockholders' equity has a balance of $60,000, then assets must have a balance of:
A) $50,000.
B) $60,000.
C) $70,000.
D) $10,000.

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Stockholders' Equity. Therefore, if Liabilities have a balance of $10,000 and Stockholders' Equity has a balance of $60,000, then Assets must have a balance of $70,000 ($10,000 + $60,000 = $70,000).

If Liabilities Have a Balance of $10,000 and Stockholders' Equity