Analyzing the Balance Sheet of ABC Corporation

Easy Financial Statements Balance Sheet

ABC Corporation has recently published its annual financial statements. Analysts reviewing the Balance Sheet noted that the company reported

Total Assets of $500,000, Total Liabilities of $300,000, and Shareholders' Equity of $200,000. As a financial analyst, you are tasked with ensuring that the reported figures adhere to the accounting equation. Based on the information provided, which of the following statements is correct?

The Balance Sheet is not balanced since Total Assets do not equal Total Liabilities plus Shareholders' Equity.

Total Assets equal Total Liabilities plus Shareholders' Equity, indicating a balanced Balance Sheet.

The Shareholders' Equity amount is incorrectly reported and should be higher.

Hint

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