Question

A company has $73M in assets and $24M in liabilities. What is the value of equity?

A) ($49M)
B) $97M
C) $49M
D) Cannot be determined with information given.

Answer 1

`\boxed{\sf (C) \ \$49M}`

Given:

Assets = $73M

Liabilities = $24M

To Find:

Value of equity

Step-by-step explanation:

Total equity is what is left over after you subtract the value of all the liabilities of a company from the value of all of its assets.

Formula:

`\boxed{ \bold{Equity = Assets - Liabilities}}`

By substituting value of assets & liabilities in the formula we get:

`\sf Equity = \$73M - \$24M \\ \\ \sf Equity = \$49M`

Answer 2

Equity = $49M

Step-by-step explanation:

Formula we use,

→ Equity = Assets - Liabilities

Now the equation is,

→ x = 73 - 24

Then the value of x will be,

→ x = 73 - 24

→ [ x = 49 ]

Hence, the equity is $49M.