Question

a. Total assets of Charter Company equal $710,000 and its equity is $425,000. What is the amount of its liabilities

Answer 1

the amount of its liabilities is $285,000

Step-by-step explanation:

From the Accounting Equation, we know that :

Assets - Liabilities = Equity

Therefore,

Liabilities = Assets - Equity

= $710,000 - $425,000

= $285,000