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Accounting problem
jaggyemt
Feb 1, 2007, 08:12 PM
Liabilities are $2000, retained earnings are $1000 and contributed capital is $3000, what are the assets?
KongTheKonqueror
Feb 2, 2007, 03:32 PM
The basic accounting equation is:
Assets = Liabilities + Equity
Retained earnings and contributed capital are both considered equity.
Assets = $2000 + $1000 + $3000 = $6000