As of December 31, 2022, Calexico Company has assets of $42,000 and stockholders' equity of $20,000.What are the liabilities for Calexico Company as of December 31, 2022?

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Stockholders' Equity. Rearranging the equation, we get Liabilities = Assets - Stockholders' Equity. Plugging in the numbers given, we get Liabilities = $42,000 - $20,000 = $22,000. Therefore, the correct answer is A) $22,000.

As of December 31, 2022, Calexico Company Has Assets of $42,000