If assets have a balance of $80,000 and stockholders' equity has a balance of $60,000, then liabilities must have a balance of:
A) $140,000.
B) $60,000.
C) $80,000.
D) $20,000.

Question

Quizplus · Accepted Answer

The balance of liabilities can be found using the accounting equation: Assets = Liabilities + Stockholders' Equity. Given that Assets = $80,000 and Stockholders' Equity = $60,000, we solve for Liabilities: $80,000 = Liabilities + $60,000, which means Liabilities = $20,000.

If Assets Have a Balance of $80,000 and Stockholders' Equity