Concept #1: Fundamental Accounting Equation

Example #1: Fundamental Accounting Equation

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

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

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