Multiple Choice
Which of the following correctly expresses the basic accounting equation?
29
views
1. Introduction to Accounting
Fundamental Accounting Equation
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
If a company has liabilities of $65,000 and equity of $25,000, what are the company's assets worth?
A
$25,000
B
$40,000
C
$60,000
D
$90,000
Verified step by step guidance1
Understand the accounting equation: Assets = Liabilities + Equity.
Identify the given values: Liabilities = $65,000 and Equity = $25,000.
Substitute the given values into the accounting equation: Assets = $65,000 + $25,000.
Perform the addition to find the total assets: Add $65,000 and $25,000.
Conclude that the company's assets are worth the sum of its liabilities and equity.
8:45mWatch next
Master Fundamental Accounting Equation with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Fundamental Accounting Equation practice set
Problem sets built by lead tutorsExpert video explanations