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22 November, 23:40

If total assets = 200 and the company has long term debt = 30 and short term debt = 50, what is the shareholders equity? O 30 O 50 O 80 O 120

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  1. 23 November, 00:28
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    The shareholders equity is 120

    Explanation:

    Basing on accounting equation:

    Total asset = Liabilities + Shareholders equity

    Therefore:

    Shareholders equity = Total asset - Liabilities = Total asset - (Short term debt + Long term debt)

    The company has total assets of 200, long term debt of 30 and short term debt of 50.

    Shareholders equity = 200 - (50 + 30) = 200 - 80 = 120
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