Sawaddee Enterprises began the year with total assets of $450,000 and total liabilities of $230,000.If Sawaddee's total assets doubled to $900,000 and its owners' equity remained the same during the year, what was the amount of its total liabilities at the end of the year?
A)$670,000
B)$680,000
C)$440,000
D)$900,000

Question

Quizplus · Accepted Answer

If Sawaddee's total assets doubled to $900,000 and its owners' equity remained the same, then the amount of its owners' equity is still $220,000 ($450,000 - $230,000). Therefore, the amount of its liabilities is $680,000 ($900,000 - $220,000).

Sawaddee Enterprises Began the Year with Total Assets of $450,000