What is the total assets figure on the balance sheet example?

What is the total assets figure on the balance sheet example?

• A. $6,000
• B. $11,000
• C. $23,000
• D. $17,000

Answer: (D)

Total assets are found by summing every asset item listed on the balance sheet. This includes current assets like cash, accounts receivable, and inventory, as well as long-term assets such as property, plant, and equipment (and any intangible assets). The total you get from adding all these asset line items is the total assets, and it should balance with the combined total of liabilities and equity on the other side of the sheet. In the example, when you add all the asset line items together, they total 17,000, so the total assets figure is 17,000. The other option numbers would only be correct if the asset components added up to that amount; they don’t in this case, which is why 17,000 is the right total. Always verify by checking that assets equal liabilities plus equity.

Total assets are found by summing every asset item listed on the balance sheet. This includes current assets like cash, accounts receivable, and inventory, as well as long-term assets such as property, plant, and equipment (and any intangible assets). The total you get from adding all these asset line items is the total assets, and it should balance with the combined total of liabilities and equity on the other side of the sheet.

In the example, when you add all the asset line items together, they total 17,000, so the total assets figure is 17,000. The other option numbers would only be correct if the asset components added up to that amount; they don’t in this case, which is why 17,000 is the right total. Always verify by checking that assets equal liabilities plus equity.