Question

a. Total assets of Charter Company equal $710,000 and its equity is $425,000. What is the amount of its liabilities

Answer 1

Answer:

the amount of its liabilities is $285,000

Explanation:

From the Accounting Equation, we know that :

Assets - Liabilities = Equity

Therefore,

Liabilities = Assets - Equity

                = $710,000  - $425,000

                = $285,000