N3 Corporation has assets of $4,200,000, common stock of $1,092,000, and retained earnings of $665,000.What are the creditors' claims on their assets?
A)$3,773,000
B)$1,757,000
C)$2,443,000
D)$4,627,000

Question

Quizplus · Accepted Answer

The creditors' claims on the assets, also known as liabilities, can be calculated by subtracting the equity (common stock + retained earnings) from the total assets. So, $4,200,000 - ($1,092,000 + $665,000) = $2,443,000.

N3 Corporation Has Assets of $4,200,000, Common Stock of $1,092,000