If your liabilities total $448,000 and owner's equity totals $1,542,000, what do your assets total?
A) $946,000
B) $1,542,000
C) $1,094,000
D) $1,108,000

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Owner's Equity. Therefore, Assets = Liabilities + Owner's Equity.
Substituting the given values, we get,
Assets = $448,000 + $1,542,000
Assets = $1,990,000
Hence, the assets total $1,990,000, which is closest to option C, $1,094,000.

If Your Liabilities Total $448,000 and Owner's Equity Totals $1,542,000