The assets of a company total $700,000; the liabilities, $200,000. What are the net assets?
A) $500,000.
B) $900,000.
C) $200,000.
D) It is impossible to determine unless the amount of this owners' investment is known.
E) $700,000.

Question

Quizplus · Accepted Answer

Net assets are calculated by subtracting liabilities from assets. Therefore, the net assets of the company would be $500,000 ($700,000 - $200,000).

The Assets of a Company Total $700,000; the Liabilities, $200,000