Question

A firm has fixed assets of $28,000, long-term debt of $12,000, current liabilities of $4,000, current assets of $5,000 and equity of $17,000. What is the total of the assets side of the balance sheet of the firm

Answer 1

Answer:

$33,000

Explanation:

assets = liabilities + stockholders' equity

assets include current assets + non current or fixed assets = $5,000 + $28,000 = $33,000

liabilities and stockholders' equity include current liabilities + long term liabilities + equity = $4,000 + $12,000 + $17,000 = $33,000

both sides of the accounting equation must always be equal, that is meant by balance.