Sandy's balance sheet shows assets of $120,000, liabilities of $100,000 and stockholder's equity of $25,000.Her balance sheet is in balance.

Name: Sandy's balance sheet shows assets of $120,000, liabilities of $100,000 and stockholder's equity of $25,000.Her balance sheet is in balance.
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Question

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The total assets and liabilities and equity should be equal for the balance sheet to be in balance. Here, the total assets and liabilities and equity add up to $145,000 which means the balance sheet is not in balance.

Sandy's Balance Sheet Shows Assets of $120,000, Liabilities of $100,000