A company has assets of $56,320 and liabilities of $29,500. The owner's equity is $85,820.

Question

Quizplus · Accepted Answer

The equation for the balance sheet is Assets = Liabilities + Owner's Equity. If we rearrange the equation, we get Owner's Equity = Assets - Liabilities. Substituting the given values, we get Owner's Equity = $56,320 - $29,500 = $26,820, which is different from the given value of $85,820. Therefore, the statement is false.

A Company Has Assets of $56,320 and Liabilities of $29,500