As of June 30, 2018, Actual Tigers Company has assets of $100,000 and stockholders' equity of $40,000. What are the liabilities for Actual Tigers Company as of June 30, 2018?

Question

Quizplus · Accepted Answer

As per the accounting equation, Assets = Liabilities + Stockholders' Equity. 
Given, Assets = $100,000 and Stockholders' Equity = $40,000
Therefore, Liabilities = Assets - Stockholders' Equity
Liabilities = $100,000 - $40,000 = $60,000. 
Hence, the correct option is B.

As of June 30, 2018, Actual Tigers Company Has Assets