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    janefriel923's Avatar
    janefriel923 Posts: 4, Reputation: 1
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    #1

    Nov 17, 2013, 12:50 PM
    Accounting Question
    If assets are $205,000 and owner’s equity is $75,000, the amount of the liabilities is:
    A) $280,000
    B) $205,000
    C) $75,000
    D) $130,000
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Nov 17, 2013, 01:35 PM
    You need to know the basic Accounting Equation. It is: Assets = Liabilities + Owners Equity.

    This can be rewritten to find Liabilities. So: Liabilities = Assets - Owners Equity .
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