A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?
A) $45,000.
B) $92,000.
C) $98,000.
D) $210,000.
E) $282,000.

Question

Quizplus · Accepted Answer

The company's net income is revenues minus expenses, which is $210,000 - $165,000 = $45,000. The ending equity is the beginning equity plus net income, so $145,000 + $45,000 = $190,000. The accounting equation states that Assets = Liabilities + Equity. Therefore, the total assets at the end of the year are $92,000 (liabilities) + $190,000 (equity) = $282,000.

A Company Reported Total Equity of $145,000 at the Beginning