If assets are $225 000,opening equity is $100 000,liabilities are $60 000 and income is $145 000,expenses must be:

Question

Quizplus · Accepted Answer

Assets = Liabilities + Equity 
225,000 = 60,000 + 100,000 + Income - Expenses 
225,000 = 160,000 + Income - Expenses 
Income - Expenses = 225,000 - 160,000 
Income - Expenses = 65,000 
Expenses = 65,000 - Income 
Expenses = 65,000 - 145,000 
Expenses = -80,000 
Since expenses cannot be negative, the answer must be $80,000.

If Assets Are $225 000,opening Equity Is $100 000,liabilities Are