The Accounting Equation for Quattro Enterprises Is as Follows $$\frac { \text { Assets } } { \$ 120,000 } = \frac { \text { Liabilities } } { \$ 60,000 } + \frac { \text { Stockholders' Equity } } { \$ 60,000 }$$

question 95

Short Answer

The accounting equation for Quattro Enterprises is as follows: $$\frac { \text { Assets } } { \$ 120,000 } = \frac { \text { Liabilities } } { \$ 60,000 } + \frac { \text { Stockholders' Equity } } { \$ 60,000 }$$ If Quattro purchases office equipment on account for $25,000, the accounting equation will change to $\text { Assets\quad\quad Liabilties\quad Stockholders' Equity }$
a. $\$ 120,000=\$ 60,000+\$ 60,000$
b. $\$ 145,000=\$ 60,000+\$ 85,000$
c. $\$ 145,000=\$ 72,500+\$ 72,500$
d. $\$ 145,000=\$ 85,000+\$ 60,000$

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