Sandy's balance sheet shows assets of $120,000,liabilities of $100,000,and shareholders' equity of $25,000.Her balance sheet is in balance.

Name: Sandy's balance sheet shows assets of $120,000,liabilities of $100,000,and shareholders' equity of $25,000.Her balance sheet is in balance.
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

The total assets ($120,000) should equal the total of liabilities ($100,000) and shareholders' equity ($25,000), which adds up to $125,000. Therefore, the balance sheet is not in balance.

Sandy's Balance Sheet Shows Assets of $120,000,liabilities of $100,000,and Shareholders