S. Storm has $20,000 invested in his business and the business owes creditors $8,000. Determine the amount of assets in the business.

Name: S. Storm has $20,000 invested in his business and the business owes creditors $8,000. Determine the amount of assets in the business.
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Question

Quizplus · Accepted Answer

Assets = Owner's equity + liabilities
Owner's equity = $20,000 (Amount invested by S. Storm)
Liabilities = $8,000 (Amount owed by the business to its creditors)
Assets = $20,000 + $8,000 = $28,000

S Storm Has $20,000 Invested in His Business and the Business