If the liabilities of a business are $85,000 and the owners' equity is $110,000,which of the following is a correct statement?
A) Assets equal $25,000.
B) Assets equal $195,000.
C) Assets equal $110,000.
D) Assets equal $85,000.
E) It is impossible to determine the value of the assets.

Question

Quizplus · Accepted Answer

In the accounting equation, Assets = Liabilities + Owners' Equity. Substituting the given values, we get Assets = $85,000 + $110,000 = $195,000. Therefore, Option B is the correct answer.

If the Liabilities of a Business Are $85,000 and the Owners