The FastForward Company balance sheet shows cash $5,000, accounts receivable $7,000, office equipment $3,000, and accounts payable $4,000. What is the amount of equity?

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Quizplus · Accepted Answer

Equity is calculated as total assets minus total liabilities. Total assets are $5,000 (cash) + $7,000 (accounts receivable) + $3,000 (office equipment) = $15,000. Total liabilities are $4,000 (accounts payable). Therefore, equity is $15,000 - $4,000 = $11,000.

The FastForward Company Balance Sheet Shows Cash $5,000, Accounts Receivable