Question

A company has $530,000 in assets and $170,000 in shareholder's equity.

What is the total of the company's liabilities?
O A. $360,000
O B. $170,000
O C. $700,000
O D. $265,000

Answer 1

A. $360,000

Explanation:

Shareholder equity is the amount by which the assets exceed the liabilities.

A - L = E

530,000 - L = 170,000

L = 530,000 -170,000 = 360,000

The total of the company's liabilities is $360,000.