As of December 31, Year 2, Bristol Company had $100,000 of assets, $40,000 of liabilities and $25,000 of retained earnings. What percentage of Bristol's assets were obtained from investors?
A) 60%
B) 25%
C) 40%
D) 35%

Question

Quizplus · Accepted Answer

The equity from investors is calculated as Assets - Liabilities - Retained Earnings = $100,000 - $40,000 - $25,000 = $35,000. The percentage of assets obtained from investors is ($35,000 / $100,000) * 100% = 35%.

As of December 31, Year 2, Bristol Company Had $100,000