Spring Company has assets and equity that amount to $220,000 and $20,000, respectively. Liabilities total ________.
A) $20,000
B) $200,000
C) $220,000
D) $240,000

Name: Spring Company has assets and equity that amount to $220,000 and $20,000, respectively. Liabilities total ________. A) $20,000 B) $200,000 C) $220,000 D) $240,000
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Question

Quizplus · Accepted Answer

Assets = Liabilities + Equity, so Liabilities = Assets - Equity
Liabilities = $220,000 - $20,000 = $200,000. Therefore, the correct choice is B.

Spring Company Has Assets and Equity That Amount to $220,000