The owners' equity of Senesta Corp., an event management company, adds up to $23 million, and its liabilities add up to $17 million. Based on the accounting equation, the assets of Senesta Corp. are worth _____.
A) $1.35 million
B) $391 million
C) $7 million
D) $40 million

Question

Quizplus · Accepted Answer

The accounting equation states that Assets = Liabilities + Owners' Equity. Therefore, the assets of Senesta Corp. are worth $23 million (owners' equity) + $17 million (liabilities) = $40 million.

The Owners' Equity of Senesta Corp