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A business reports total assets of R450 000 and equity of R270 000. What is the total liabilities balance according to the accounting equation?

Accounting

ScanSolve AI Answer

Answer

B\text{B}

Step-by-step solution

3 steps

To find the total liabilities balance, we use the fundamental accounting equation:

Assets=Liabilities+Equity\text{Assets} = \text{Liabilities} + \text{Equity}

  1. Identify the given values.

    Total Assets = R450 000
    Equity = R270 000

  2. Rearrange the accounting equation to solve for Liabilities.

    Liabilities=Assets−Equity\text{Liabilities} = \text{Assets} - \text{Equity}

  3. Substitute the given values into the equation and calculate.

    Liabilities=R450 000−R270 000\text{Liabilities} = \text{R450 000} - \text{R270 000} Liabilities=R180 000\text{Liabilities} = \text{R180 000}

    The final answer is B\text{B}

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