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

Question

Quizplus · Accepted Answer

Since Assets = Liabilities + Owners' Equity, we can solve for liabilities by rearranging the equation to be: Liabilities = Assets - Owners' Equity. Plugging in the given values, we get: Liabilities = $107,000 - $75,000 = $32,000. Therefore, D is the correct choice.

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