A company has twice as much owner's equity as it does liabilities.If total liabilities are $50,000,what amount of assets are owned by the company?
A)$50,000
B)$100,000
C)$150,000
D)$200,000
E)Assets cannot be determined from the given information.

Question

Quizplus · Accepted Answer

Owner's equity is twice the liabilities, so it is $100,000. Assets = Liabilities + Owner's Equity = $50,000 + $100,000 = $150,000.

A Company Has Twice as Much Owner's Equity as It