If the assets of Martin's Pet Store are $107,000 and the owners' equity is $75,000, which of the following is a correct statement?
A)The owners' investment equals $182,000.
B)The current assets are worth $32,000.
C)The new income for the period is $32,000.
D)The long-term liabilities are $75,000.
E)The liabilities are $32,000.

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Owners' Equity. Therefore, Liabilities = Assets - Owners' Equity = $107,000 - $75,000 = $32,000.

If the Assets of Martin's Pet Store Are $107,000 and the Owners