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

Answer 1

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

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

We have the following information:

• Total assets = $45,000
• Net worth = $25,000

We need to find the total liabilities. Plugging in the known values, the equation becomes:

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

To isolate liabilities, we can rearrange the equation:

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

Calculating that:

\[ \text{Liabilities} = 20,000 \]

Thus, the total balance of liabilities is

\[ \boxed{20,000} \]