As the accountant for Ideal Manufacturing Company, you determine the following totals in your balance sheet: total assets―$124,000; current liabilities―$41,000; long-term liabilities―$13,000. What is the total owners' equity for this company?
A) $178,000
B) $165,000
C) $137,000
D) $70,000
E) $0

Question

Quizplus · Accepted Answer

Total owners' equity is calculated as total assets minus total liabilities. Total liabilities are the sum of current liabilities and long-term liabilities, which is $41,000 + $13,000 = $54,000. Therefore, owners' equity is $124,000 - $54,000 = $70,000.

As the Accountant for Ideal Manufacturing Company, You Determine the Following