question 5 of 5 if the assets owned by a business total $100,000 and liabilities total $65,000, then…

question 5 of 5 if the assets owned by a business total $100,000 and liabilities total $65,000, then stockholders equity totals $25,000. true false

question 5 of 5 if the assets owned by a business total $100,000 and liabilities total $65,000, then stockholders equity totals $25,000. true false

Answer

Explanation:

Step1: Recall accounting equation

Assets = Liabilities + Stockholders' Equity

Step2: Substitute given values

Given Assets = $100,000 and Liabilities = $65,000. So, Stockholders' Equity=Assets - Liabilities = $100,000 - $65,000=$35,000, not $25,000.

Answer:

False