If a company has assets of $460,000, liabilities of $100,000, and capital stock of $210,000, what is the amount of retained earnings?

Question

Quizplus · Accepted Answer

Retained earnings can be calculated using the accounting equation: Assets = Liabilities + Capital Stock + Retained Earnings. Plugging in the values: $460,000 = $100,000 + $210,000 + Retained Earnings, which gives Retained Earnings = $150,000.

If a Company Has Assets of $460,000, Liabilities of $100,000