Your small printing shop has assets of $18,000. If your equity is $5,000, what is the amount of your liabilities?
A) $3,000
B) $13,000
C) $2,000
D) $8,000

Name: Your small printing shop has assets of $18,000. If your equity is $5,000, what is the amount of your liabilities? A) $3,000 B) $13,000 C) $2,000 D) $8,000
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Question

Quizplus · Accepted Answer

Liabilities can be calculated using the accounting equation: Assets = Liabilities + Equity. Therefore, Liabilities = Assets - Equity = $18,000 - $5,000 = $13,000.

Your Small Printing Shop Has Assets of $18,000