Question

Happy Selling Company's total liabilities amounted P10,000. Total equity had an ending balance of 20,000. How much is total assets?

a) P30,000
b) P15,000
c) P20,000
d) P10,000

Answer 1

To find Happy Selling Company's total assets, add total liabilities (P10,000) and total equity (P20,000) following the equation Assets = Liabilities + Equity. The result is P30,000, which is option a).

Step-by-step explanation:

The student's question relates to the basic accounting equation, which is Assets = Liabilities + Equity. Happy Selling Company's total liabilities are P10,000, and total equity has an ending balance of P20,000. To calculate the total assets, you add the total liabilities and total equity together:

Total Assets = Total Liabilities + Total Equity = P10,000 + P20,000 = P30,000.

Therefore, the correct answer is a) P30,000.