If total liabilities of a company equal $16,000 and total stockholders' equity equals $9,000,then total assets equal $7,000.

Question

Quizplus · Accepted Answer

Total assets should equal the sum of total liabilities and total stockholders' equity, but in this case, the given numbers do not add up.

Total liabilities + Total stockholders' equity = $16,000 + $9,000 = $25,000

Therefore, total assets should also equal $25,000, not $7,000.

If Total Liabilities of a Company Equal $16,000 and Total