Question

Current Assets = $24,000; Long-Term Assets = $60,000; Owner's

Equity = $70,000. Therefore, Liabilities are Blank______.

Answer 1

If Current Assets are $24,000 and Long-Term Assets are $60,000, the total assets equal $84,000. With Owner's Equity at $70,000, Liabilities can be calculated as $84,000 - $70,000 = $14,000.

Step-by-step explanation:

The subject of this question is business, specifically focusing on the fundamentals of accounting. To answer the question: If Current Assets are $24,000, Long-Term Assets are $60,000, and Owner's Equity is $70,000, we must calculate Liabilities using the basic accounting equation:

Assets = Liabilities + Owner's Equity

In this case, the total assets would be the sum of Current Assets and Long-Term Assets, which equals $24,000 + $60,000 = $84,000. Using the accounting equation, to find Liabilities, we rearrange to:

Liabilities = Assets - Owner's Equity

So, Liabilities = $84,000 - $70,000 = $14,000.

Therefore, the answer to the student's question is that Liabilities are $14,000.