If total assets equal $270,000 and total liabilities equal $202,500, the total equity must equal:
A) $472,500.
B) $67,500.
C) Can not be determined from the information given.
D) Some other amount.

Question

Quizplus · Accepted Answer

Total equity can be calculated by subtracting total liabilities from total assets. Therefore, $270,000 - $202,500 = $67,500. The correct answer is B.

If Total Assets Equal $270,000 and Total Liabilities Equal $202,500