Final answer:
The subject of this question is Business and the grade level is High School. In this question, the student is given the information that Charity's Cupcakes has liabilities totaling $59,000 and owners' equity of $124,000. The student can interpret this information by using the accounting equation, which states that assets equal liabilities plus owners' equity. Therefore, the assets of Charity's Cupcakes would be $183,000.
Step-by-step explanation:
The subject of this question is Business and the grade level is High School.
In this question, the student is given the information that Charity's Cupcakes has liabilities totaling $59,000 and owners' equity of $124,000. The question asks for the interpretation of this information.
The student can interpret this information by using the accounting equation, which states that assets equal liabilities plus owners' equity. Therefore, the student can conclude that the assets of Charity's Cupcakes would be $59,000 + $124,000 = $183,000.