Multiple choice Capital is 60000 asset is 100000 then liability is ? 160000 40000 26500 none Reveal answer Fill a bubble to check yourself B Correct answer Explanation Using the accounting equation Assets = Capital + Liabilities: 100000 = 60000 + Liabilities. Therefore, Liabilities = 100000 - 60000 = 40000. This is a direct application of the fundamental accounting equation.