The assets of a company total $700,000; the liabilities,$200,000.What are the net assets?
A)$900,000.
B)$700,000.
C)$500,000.
D)$200,000.
E)It is impossible to determine unless the amount of stockholder investments is known.

Question

Quizplus · Accepted Answer

Net assets are calculated by subtracting the total liabilities from the total assets. So, net assets = $700,000 - $200,000 = $500,000. Therefore, option C is the correct answer.

The Assets of a Company Total $700,000; the Liabilities,$200,000