At December 31,2020,ABCCompanys assetssare $¢5,500and equity $3000 .what are the liabilitiesfor ABC companys at December 31 2020

Question

A $500
B $1000
C 2500
D $2000

Answer 1

To find the liabilities for ABC Company at December 31, 2020, we can use the accounting equation:

Assets = Liabilities + Equity

Given that the assets are $5,500 and the equity is $3,000, we can rearrange the equation to solve for liabilities:

Liabilities = Assets - Equity
Liabilities = $5,500 - $3,000
Liabilities = $2,500

Therefore, the liabilities for ABC Company at December 31, 2020, are $2,500.

The answer is C) $2,500.