A company reported total equity of $145,000 at the beginning of the year.The company reported $210,000 in revenues and $165,000 in expenses for the year.Liabilities at the end of the year totaled $92,000.What are the total assets of the company at the end of the year?

A) $45,000.
B) $92,000.
C) $98,000.
D) $210,000.
E) $282,000.

Question

Cesar Alvarez · Accepted Answer

Final Answer : E, Explanation :  The accounting equation is Assets = Liabilities + Equity. We can first find the ending equity by subtracting the expenses from the revenues:$210,000 - $165,000 = $45,000We also know that liabilities at the end of the year totaled $92,000. Using the accounting equation, we can solve for assets:Assets = Liabilities + EquityAssets = $92,000 + $45,000Assets = $137,000However, this only gives us the net amount of assets at the end of the year, and not the total amount of assets. We need to add back in the beginning equity to get the total assets:Total assets = Ending assets + Beginning equityTotal assets = $137,000 + $145,000Total assets = $282,000Therefore, the correct answer is (E) $282,000.

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