If the total assets of a business are $107,000 and its liabilities are $75,000, which of the following statements is correct?
a. liabilities are $32,000
b. liabilities are $42,000
c. liabilities are $57,000
d. liabilities are $98,000

Note: In question part $75,000 shall represent equity, as there are only 3 parts of balance sheet assets, equity and liabilities, if assets are given liabilities is what we need to calculate the missing is equity.

Thus, $75,000 is treated as equity.

In that case we have,

Assets = Equity + Liabilities

$107,000 = $75,000 + Liabilities

Assets - Equity = Liabilities

$107,000 - $75,000 = Liabilities

$32,000 = Liabilities

Therefore, correct option is

a. liabilities are $32,000

If the total assets of a business are $107,000 and its liabilities are $75,000, which of the following statements is correct? a. liabilities are $32,000 b. liabilities are $42,000 c. liabilities are $57,000 d. liabilities are $98,000

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If the total assets of a business are $107,000 and its liabilities are $75,000, which of the following statements is correct?
a. liabilities are $32,000
b. liabilities are $42,000
c. liabilities are $57,000
d. liabilities are $98,000