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The answer is D. $300,000
The basic accounting equation is Asset equals Liabilities plus Owner’s Equity
Let A be assets
L be liabilities
E be owner’s equity
The formula is as follows:
A = L + E
A = $200,000 + (1/3)A
A – (1/3)A = $200,000
2/3(A) = $200,000
A = $300,000
option D. $300,000.........................
300000.
equity is1/3 of total asset therefore liabilty is2/3 of total asset.
total asset =200000*3/2 ie,300000
Liabilities :2/3 so the total assets:200000*3/2 : $300,000. Answer D : $300,000.
D) $300,000 approximately
Using the accounting equation mathematically
Asset = Liablities + Capital, lets represent asset by "x" this implies x =200,000 +1/3x
x -1/3x =200,000
0.666667x =200,000
x (asset) =200,000/0.666667 =299,999.85 approximately $300,000
Answer
200000*3/2=300000
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