If a company has $50,000 of assets, which of the following could be true?
A) It has ―$50,000 in stockholders' equity and $100,000 in liabilities.
B) The company has fewer assets than it does liabilities.
C) It has $30,000 in liabilities and $80,000 in owners' equity.
D) The company has more owners' equity than assets.
E) It has $23,000 in owners' equity and $27,000 in liabilities.

Question

Quizplus · Accepted Answer

The accounting equation states that Assets = Liabilities + Owners' Equity. With $50,000 in assets, having $23,000 in owners' equity and $27,000 in liabilities satisfies this equation: $23,000 + $27,000 = $50,000.

If a Company Has $50,000 of Assets, Which of the Following