Given $45,000 worth of total assets and a net worth of $25,000, what is the total balance of liabilities?(1 point) Responses $15,000 $15,000 $70,000 $70,000 $20,000 $20,000 −$20,000 negative 20,000 dollars Skip to navigation

Answer 1

To find the total balance of liabilities, we can use the accounting equation:

\[ \text{Assets} = \text{Liabilities} + \text{Net Worth} \]

Given that the total assets are $45,000 and the net worth is $25,000, we can rearrange the equation to solve for liabilities:

\[ \text{Liabilities} = \text{Assets} - \text{Net Worth} \]

Now, substituting in the values:

\[ \text{Liabilities} = 45,000 - 25,000 = 20,000 \]

Thus, the total balance of liabilities is $20,000.