Which of the following is correct if at the end of Crystal Imports' first year of operations, assets are $800,000 and equity is $720,000?
A) The owner must have invested $720,000 to start the business.
B) The business must be operating profitably.
C) Liabilities are $80,000.
D) Liabilities are $1,520,000.

Question

Quizplus · Accepted Answer

Assets = Liabilities + Equity. Therefore, Liabilities = Assets - Equity = $800,000 - $720,000 = $80,000.

Which of the Following Is Correct If at the End