Homework Answers
Answer: B. $ 1,250
i.e Liabilities = Assets - Equity = $ 4,900 - $ 3,650 = $ 1,250
Explanation:
Accounting equation:
The accounting equation is considered to be the foundation of the double-entry accounting system. The accounting equation shows on a company's balance that a company's total assets are equal to the sum of the company's liabilities and shareholders' equity.
Accounting equation formula:
Assets = Liabilities + Equity
=> Liabilities = Assets - Equity
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