If total assets equal $345,000 and total stockholders' equity equal $140,000, then total liabilities must equal
A) $485,000.
B) $205,000.
C) $140,000.
D) There is not enough information given to determine this.

Question

Quizplus · Accepted Answer

Total liabilities can be calculated by subtracting total stockholders' equity from total assets, therefore:
Total Liabilities = Total Assets - Total Stockholders' Equity
Total Liabilities = $345,000 - $140,000
Total Liabilities = $205,000

If Total Assets Equal $345,000 and Total Stockholders' Equity Equal