A company's balance sheet shows: cash $22,000,accounts receivable $16,000,office equipment $50,000,and accounts payable $17,000.What is the amount of equity?

Question

Quizplus · Accepted Answer

Equity = Assets - Liabilities
Assets = Cash + Accounts Receivable + Office Equipment = $22,000 + $16,000 + $50,000 = $88,000
Liabilities = Accounts Payable = $17,000
Equity = Assets - Liabilities = $88,000 - $17,000 = $71,000. Therefore, the correct answer is (C) $71,000.

A Company's Balance Sheet Shows: Cash $22,000,accounts Receivable $16,000,office Equipment