According to the accounting equation, if assets equal $4000 and liabilities equal $1500, then owner's equity would equal
A) $5500.
B) $2500.
C) $3500.
D) $8000.
E) It is not possible to tell with the information given.

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Owner's Equity. If assets equal $4000 and liabilities equal $1500, then owner's equity would be $4000 - $1500 = $2500.

According to the Accounting Equation, If Assets Equal $4000 and Liabilities