If the total assets of a business are $107,000 and its liabilities are $75,000,which of the following statements is correct?
A)The current assets are worth $32,000.
B)The owners' equity is $32,000.
C)The net income for the period is $32,000.
D)The owners' equity equals $182,000.

Question

Quizplus · Accepted Answer

To find the owners' equity, subtract the liabilities from the total assets.

Owners' equity = Total assets - liabilities 
Owners' equity = $107,000 - $75,000 
Owners' equity = $32,000

Therefore, option B is correct. Option A is incorrect as it only represents the value of the current assets. Option C is incorrect as net income cannot be determined from this information. Option D is also incorrect as it is not possible for the owners' equity to be higher than the total assets.

If the Total Assets of a Business Are $107,000 and Its