If total liabilities are $22,000 and owner's equity is $17,000, the total assets must be
A) $39,000.
B) $5,000.
C) $20,000.
D) $17,000.

Question

Quizplus · Accepted Answer

The equation for the accounting equation is Assets = Liabilities + Owner's Equity. Therefore, if the total liabilities are $22,000 and owner's equity is $17,000, we can calculate the total assets as: Assets = Liabilities + Owner's Equity = $22,000 + $17,000 = $39,000. Therefore, the correct answer is A.

If Total Liabilities Are $22,000 and Owner's Equity Is $17,000