If assets are $100 000,opening equity is $50 000,liabilities are $20 000 and income is $85 000,expenses must be:

Question

Quizplus · Accepted Answer

To find the expenses, we can use the accounting equation: Assets = Liabilities + Equity + Income - Expenses. 
Plugging in the given values, we get: 
$100 000 = $20 000 + $50 000 + $85 000 - Expenses
Simplifying this equation, we can solve for Expenses: 
Expenses = $55 000 
Therefore, the answer is D) $55 000.

If Assets Are $100 000,opening Equity Is $50 000,liabilities Are