If Assets have a balance of $40,000 and Stockholders' Equity has a balance of $30,000, then Liabilities must have a balance of:
A) $70,000.
B) $30,000.
C) $40,000.
D) $10,000.

Question

Quizplus · Accepted Answer

According to the accounting equation, Assets = Liabilities + Stockholders' Equity. Therefore, Liabilities = Assets - Stockholders' Equity = $40,000 - $30,000 = $10,000.

If Assets Have a Balance of $40,000 and Stockholders' Equity