Question

As of December 31, 2022, Rockford Corporation has assets of $3,500 and stockholders' equity of $1,500. What are the liabilities for Rockford as of December 31, 2022?
a. $1,000
b. $1,500
c. $2,000
d. $2,500

Answer 1

Answer:

c. $2,000

Explanation:

Using the accounting equation

Assets - liabilities =  Equity

Assets = $3,500

Stockholders' equity = $1,500

Liabilities = ?

The liabilities for Rockford as of December 31, 2022

= $3,500 - $1,500

= $2,000

The liabilities for Rockford as of December 31, 2022 is $2,000. Option c.