Total liabilities are $100,000 and total owners' equity is $200,000. What are total assets?
A) We need to know retained earnings before we can compute total assets.
B) We need more information on current and long-term assets before we can compute total assets.
C) $100,000
D) $300,000
Answer: D
Explanation: D) Total assets equal total liabilities plus total owners' equity. Thus, total assets equal $100,000 plus $200,000 = $300,000.
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