The assets and liabilities of the company are $175,000 and $40,000, respectively. Stockholders' equity should equal
A) $215,000
B) $135,000
C) $175,000
D) $40,000

Name: The assets and liabilities of the company are $175,000 and $40,000, respectively. Stockholders' equity should equal A) $215,000 B) $135,000 C) $175,000 D) $40,000
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Question

Quizplus · Accepted Answer

Stockholders' equity is calculated as Assets minus Liabilities. Therefore, $175,000 (assets) - $40,000 (liabilities) = $135,000.

The Assets and Liabilities of the Company Are $175,000 and $40,000