Cerrato Company has assets of $350,000,liabilities of $130,000,and retained earnings of $180,000.How much is total owners' equity?
A)$40,000
B)$170,000
C)$220,000
D)$350,000

Question

Quizplus · Accepted Answer

Total owners' equity is calculated by subtracting total liabilities from total assets. 
Owners' equity = Assets - Liabilities 
= $350,000 - $130,000 
= $220,000

Cerrato Company Has Assets of $350,000,liabilities of $130,000,and Retained Earnings