A balance sheet shows cash of $52,000, accounts receivable of $74,000, equipment of $120,000, accounts payable of $38,000, and a loan payable of $96,000. What is total equity?
Correct Answer
B) $112,000.
Assets total $246,000 and liabilities total $134,000. Equity is $112,000.
Why This Is the Correct Answer
Assets total $246,000 and liabilities total $134,000. Equity is $112,000.
Why the Other Options Are Wrong
Option A: $134,000.
$134,000. is above the supported result for balance sheet; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $150,000.
$150,000. is above the supported result for balance sheet; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $246,000.
$246,000. is above the supported result for balance sheet; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Checking Whether money test: bucket before math for balance sheet.
Reference Hint
Study anchor (closed-book): memorize Balance sheet from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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