If total liabilities of a company equal $16,000 and total stockholders' equity equals $9,000,then total assets equal $7,000.Total assets = Total liabilities ($16,000)+ Total stockholders' equity ($9,000)= $25,000.

Question

Quizplus · Accepted Answer

Total liabilities ($16,000) + Total stockholders' equity ($9,000) should equal total assets, but the calculation provided results in a total of $25,000 which cannot be correct. Therefore, the statement is false. The correct calculation would be Total assets = Total liabilities ($16,000) + Total stockholders' equity ($9,000) = $25,000.

If Total Liabilities of a Company Equal $16,000 and Total