On December 31,2001,Saskatoon Laboratories had assets of $235,000 and owners' equity of $84,000.We can conclude that Saskatoon Laboratories must have:
A)suffered a net loss of $151,000.
B)experienced a cash inflow of $319,000.
C)paid a dividend of $3.00 per share.
D)total liabilities of $151,000.

Question

Quizplus · Accepted Answer

Owners' equity represents the residual interest in assets after deducting liabilities. Therefore, if assets are $235,000 and owners' equity is $84,000, then liabilities must be $151,000 (Assets = Liabilities + Owners' Equity).

On December 31,2001,Saskatoon Laboratories Had Assets of $235,000 and Owners