If total assets are $30,000 and total liabilities are $8,000, Capital must equal
A) $22,000.
B) $38,000.
C) $8,000.
D) $30,000.

Name: If total assets are $30,000 and total liabilities are $8,000, Capital must equal A) $22,000. B) $38,000. C) $8,000. D) $30,000.
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Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Capital.
Given that total assets are $30,000 and total liabilities are $8,000,
Capital = Assets - Liabilities = $30,000 - $8,000 = $22,000. 
Therefore, the answer is choice letter A.

If Total Assets Are $30,000 and Total Liabilities Are $8,000