Fundamental Accounting Equation Video Lessons

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Problem: Briggs Automotive, Inc. has Cash of $20,000, Accounts Receivables of $30,000, Supplies of $10,000, Inventory of $50,000, Accounts Payable of $15,000, and Common Stock of $40,000. Assuming these are all of the accounts in the business, what is the value of its Retained Earnings? a. $55,000 b. $85,000 c. $95,000 d. $165,000

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Problem Details

Briggs Automotive, Inc. has Cash of $20,000, Accounts Receivables of $30,000, Supplies of $10,000, Inventory of $50,000, Accounts Payable of $15,000, and Common Stock of $40,000. Assuming these are all of the accounts in the business, what is the value of its Retained Earnings?

a. $55,000

b. $85,000

c. $95,000

d. $165,000

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What scientific concept do you need to know in order to solve this problem?

Our tutors have indicated that to solve this problem you will need to apply the Fundamental Accounting Equation concept. You can view video lessons to learn Fundamental Accounting Equation. Or if you need more Fundamental Accounting Equation practice, you can also practice Fundamental Accounting Equation practice problems.

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Our tutors rated the difficulty ofBriggs Automotive, Inc. has Cash of $20,000, Accounts Receiv...as medium difficulty.