Question

The assets and liabilities of a company are $86,600 and $44,499, respectively. Stockholders' equity should equal a.$44,499 b.$131,099 c.$86,600 d.$42,101

Answer 1

Answer:

d.$42,101

Explanation:

We use the accounting equation to determine the Equity Balance

Accounting Equation States :

Assets = Equity + Liabilities

also,

Equity = Assets - Liabilities

therefore,

Equity = $86,600 -  $44,499 = $42,101

thus

Stockholders' equity should equal $42,101