Learn the toughest concepts covered in your Financial Accounting class with step-by-step video tutorials and practice problems.

Introduction to Accounting

1

Fundamental Accounting Equation

8m

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2

Fundamental Accounting Equation

2m

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3

Problem

A company has assets totaling $50,000 and equity of $20,000. What are their liabilities?

A

$0

B

$20,000

C

$30,000

D

$70,000

4

Problem

A company has liabilities of $25,000 and assets of $35,000. What is the company’s equity?

A

$10,000

B

$20,000

C

$30,000

D

$60,000

5

Problem

If a company has liabilities of $65,000 and equity of $25,000, what are the company’s assets worth?

A

$25,000

B

$40,000

C

$60,000

D

$90,000