The Cheese Shoppe's liabilities total $59,000 and its owners' equity is $124,000. Which of the following statements is correct?
A) the total assets equal $65,000
B) the firm's assets are $124,000
C) the total assets equal $183,000
D) the firm's sales are $183,000

Question

Quizplus · Accepted Answer

The total assets of the Cheese Shoppe can be calculated by adding its liabilities and owners' equity:

Total assets = Liabilities + Owners' equity 
Total assets = $59,000 + $124,000 
Total assets = $183,000

Therefore, option C is the correct choice.

The Cheese Shoppe's Liabilities Total $59,000 and Its Owners' Equity