Question

If a company has $712,000 in liabilities, $900,000 in revenue, $620,000 in expenses, and $450,000 in equity, how much would their total assets be?


$262,000


$1,350,000


$280,000


$1,162,000

Answer 1

To determine the total assets of the company, we can use the accounting equation:

\[
\text{Assets} = \text{Liabilities} + \text{Equity}
\]

From the information provided:

- Liabilities = $712,000
- Equity = $450,000

Now we can plug these values into the accounting equation:

\[
\text{Assets} = 712,000 + 450,000
\]

Calculating this gives:

\[
\text{Assets} = 1,162,000
\]

Therefore, the total assets of the company are **$1,162,000**.