Little Tots' liabilities are $130,000, and its owners' equity is $170,000. What do we also know about Little Tots?
A) Its total assets are $300,000.
B) Its net income for the current year was $300,000.
C) Its net cash flow for the current year was $40,000.
D) Its net income is $40,000.

Question

Quizplus · Accepted Answer

The total assets of Little Tots can be calculated by adding its liabilities ($130,000) to its owners' equity ($170,000), which equals $300,000. This means that Choice A is the correct answer. None of the other choices can be determined using the given information.

Little Tots' Liabilities Are $130,000, and Its Owners' Equity Is