The Team Shirts' balance sheet has assets of $6,500 and liabilities of $4,000.Its shareholders' equity is ________.
A)$10,500
B)$2,500
C)$6,500
D)$4,000

Name: The Team Shirts' balance sheet has assets of $6,500 and liabilities of $4,000.Its shareholders' equity is ________. A)$10,500 B)$2,500 C)$6,500 D)$4,000
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Question

Quizplus · Accepted Answer

Shareholders' equity is calculated as Assets - Liabilities. Thus, in this case, Shareholders' equity would be $6,500 - $4,000 = $2,500. Therefore, the best choice is B.

The Team Shirts' Balance Sheet Has Assets of $6,500 and Liabilities