Milwaukee Fabrication has $80 million in assets and $50 million in owners' equity.How much does the firm have in liabilities?
A)$80 million
B)$50 million
C)$30 million
D)$20 million

Question

Quizplus · Accepted Answer

The total assets of the firm are equal to the sum of its liabilities and owners' equity.

Assets = Liabilities + Owners' equity

$80 million = Liabilities + $50 million

Liabilities = $80 million - $50 million

Liabilities = $30 million

Milwaukee Fabrication Has $80 Million in Assets and $50 Million