WHAT IS THE STOCKHOLDER EQUITY?

Question

The assets and liabilities of a company are $86,313 and $46,198, respectively. Stockholders' equity should equal

a. $40,115

b. $132,511

c. $46,198

d. $86,313

Answer 1

Stockholders' equity is calculated as the difference between the company's assets and liabilities. In this case, the assets are $86,313 and the liabilities are $46,198.

So, Stockholders' equity = Assets - Liabilities

Stockholders’ equity=$86,313−$46,198=$40,115Stockholders’ equity=$86,313−$46,198=$40,115

Therefore, the correct answer is option a. $40,115.