If the liabilities of a business are $85,000 and the owners' equity is $110,000, which of the following statements is correct?
A) assets equal $25,000
B) assets equal $195,000
C) assets equal $110,000
D) assets equal $85,000

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Owners' Equity. Therefore, Assets = $85,000 (liabilities) + $110,000 (owners' equity) = $195,000.

If the Liabilities of a Business Are $85,000 and the Owners