At the end of a recent year, Anderson Cleaning Service, a full-service house and office cleaning service, had total assets of $ 5,810 and equity of $ 3,650. How much were Anderson Cleaning Service's liabilities? A. $2,580 B. $3.780 C. $10,140 D. $6,360

Question

Business

Chace Mccullough

21 January, 22:39

At the end of a recent year, Anderson Cleaning Service, a full-service house and office cleaning service, had total assets of $ 5,810 and equity of $ 3,650. How much were Anderson Cleaning Service's liabilities? A. $2,580 B. $3.780 C. $10,140 D. $6,360

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Answers (1)

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Brett Kirk · Answer 1

Anderson Cleaning Service's liabilities were $2,160

Explanation:

Basing on accounting equation:

Total asset = Liabilities + Owner's (or Stockholders') Equity

Liabilities = Total asset - Owner's (or Stockholders') Equity

At the end of a recent year, Anderson Cleaning Service had total assets of $5,810 and equity of $3,650

Anderson Cleaning Service's liabilities = Total asset - Equity = $5,810 - $3,650 = $2,160