On January 31, an entity's balance sheet showed total assets of $750 and liabilities of $250. Stockholders' equity at January 31 was:
A) $500
B) $1,000
C) $750
D) $250

Name: On January 31, an entity's balance sheet showed total assets of $750 and liabilities of $250. Stockholders' equity at January 31 was: A) $500 B) $1,000 C) $750 D) $250
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

Stockholders' equity is calculated as total assets minus total liabilities. Therefore, $750 (total assets) - $250 (liabilities) = $500 (stockholders' equity).

On January 31, an Entity's Balance Sheet Showed Total Assets