A company's balance sheet shows: cash $24,000, accounts receivable $30,000, equipment $50,000, and equity $72,000. What is the amount of liabilities?

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Equity. The total assets are $24,000 (cash) + $30,000 (accounts receivable) + $50,000 (equipment) = $104,000. Given equity is $72,000, liabilities = $104,000 - $72,000 = $32,000.

A Company's Balance Sheet Shows: Cash $24,000, Accounts Receivable $30,000