Question

Apply the accounting equation to the following problem. Total assets of Charter Company equal $700,000, and its equity is $420,000. What is the amount of its liabilities? Format your solution as a whole dollar amount without the dollar sign, decimals, or a comma. Example: 1200

Answer 1

Answer:

The amount of its liabilities is 280000

Explanation:

In a business balance we can see the following accounting equation

liabilities + owners' equity= assets

liabilities = assets -owners' equity

liabilities = $700,000-$420,000

liabilities = $280,000