The total liabilities of a company from the balance sheet are found to be $30.78 M. If the equity is stated as $40.15 M, the asset of the company is $9.37.

Name: The total liabilities of a company from the balance sheet are found to be $30.78 M. If the equity is stated as $40.15 M, the asset of the company is $9.37.
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Quizplus · Accepted Answer

The assets of a company are calculated by adding liabilities and equity. Therefore, assets = $30.78 M (liabilities) + $40.15 M (equity) = $70.93 M, not $9.37 M.

The Total Liabilities of a Company from the Balance Sheet