According to the accountant for Michael's Floral Supply,the firm's assets are $124,000 and its liabilities are $31,000.Which of the following statements is correct?
A) The owners' equity is $155,000.
B) The owners' equity is $93,000.
C) The firm's current assets are $62,000.
D) The firm's current liabilities are $24,000.
E) The firm's accounting equation won't balance.

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Owners' Equity.
Using the information given in the question, we can solve for the owners' equity:
Assets = $124,000
Liabilities = $31,000
Owners' Equity = Assets - Liabilities
Owners' Equity = $124,000 - $31,000
Owners' Equity = $93,000

Therefore, choice B is correct. The owners' equity is $93,000.

According to the Accountant for Michael's Floral Supply,the Firm's Assets