10
QuizMultiple Choice

Business Essentials — Quiz

Question 10 • Financial Math

A corporation has total assets of $⁢1,000,000 and total liabilities of $⁢400,000 What is the corporation's equity?

Answer
A
400 dollars comma 000
B
600 dollars comma 000
C
1 dollars comma 000 comma 000
D
1 dollars comma 400 comma 000

Explanation

Use the accounting equation: assets = liabilities + equity. Rearrange it to find equity: $1,000,000 − $400,000 = $600,000. Therefore, the corporation’s equity is 600 dollars comma 000, choice B.

AI-written and checked against the verified answer.

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