Question

The liabilities and owner’s equity of a company are $328,000 and $284,000, respectively. Assets should equal

a) $44,000
b) $328,000
c) $284,000
d) $612,000

Answer 1

The total assets of a company, when given the liabilities and owner's equity values, can be found by adding the two, resulting in $612,000, which is option (d).

Step-by-step explanation:

The liabilities and owner’s equity of a company are given as $328,000 and $284,000 respectively. In accordance with the fundamental accounting equation, Assets = Liabilities + Owner’s Equity. Therefore, to find the total assets of the company, we add the liabilities and the owner’s equity together.

$328,000 (Liabilities) + $284,000 (Owner’s Equity) = $612,000 (Assets)

This means that the assets should equal $612,000, which corresponds to option (d).