A firm has $200,000 in total assets and $120,000 in owner's equity. What are the total liabilities?

A. $80,000
B. $200,000
C. $320,000
D. Cannot be determined from the information given
A

To determine the total liabilities, we need to use the accounting equation, which states that Assets = Liabilities + Owner's Equity.

Given:
Total assets = $200,000
Owner's equity = $120,000

We can rearrange the equation to solve for liabilities:
Liabilities = Total assets - Owner's equity

Substituting the given values:
Liabilities = $200,000 - $120,000
Liabilities = $80,000

Therefore, the answer is A. $80,000.