The assets of a company total $700,000; the liabilities, $200,000. What are the net assets?
A)$900,000.
B)$700,000.
C)$500,000.
D)$200,000.
E)It is impossible to determine unless the amount of the common stock is known.

Question

Quizplus · Accepted Answer

Net assets can be calculated by subtracting the total amount of liabilities from the total assets. 
Net Assets = Total Assets - Total Liabilities
Therefore, 
Net Assets = $700,000 - $200,000 
Net Assets = $500,000

The Assets of a Company Total $700,000; the Liabilities, $200,000