Ballard Company reported assets of $500 and liabilities of $200.What amount will Ballard's report for stockholders' equity?
A)$300
B)$500
C)$700
D)Cannot be determined

Question

Quizplus · Accepted Answer

In the accounting equation,assets equal claims (liabilities + equity).If assets are $500,total claims must also be $500.Therefore,stockholders' equity must be $500 - $200,or $300.

Ballard Company Reported Assets of $500 and Liabilities of $200