If total assets equal $345,000 and total owners' equity equal $120,000,then total liabilities must equal:
A)$465,000.
B)$225,000.
C)$120,000.
D)Cannot be determined from the information given.

Question

Quizplus · Accepted Answer

Total liabilities can be calculated by subtracting total owners' equity ($120,000) from total assets ($345,000):
$345,000 - $120,000 = $225,000. Therefore, the correct answer is B, $225,000.

If Total Assets Equal $345,000 and Total Owners' Equity Equal