If the assets of Martin's Pet Store are $107,000 and the owners' equity is $75,000, which of the following is a true statement?
A) The owners' investment equals $182,000.
B) The current assets are worth $32,000.
C) The new income for the period is $32,000.
D) The long-term liabilities are $75,000.
E) The liabilities are $32,000.

Question

Quizplus · Accepted Answer

The correct answer is derived from the accounting equation: Assets = Liabilities + Owners' Equity. Given that Assets are $107,000 and Owners' Equity is $75,000, we can solve for Liabilities as $107,000 - $75,000 = $32,000.

If the Assets of Martin's Pet Store Are $107,000 and the Owners