If the Total Assets of a Business Are $107,000 and Its

question 166

Multiple Choice

If the total assets of a business are $107,000 and its liabilities are $75,000,which of the following statements is correct?

• A)The current assets are worth $32,000.
• B)The owners' equity is $32,000.
• C)The net income for the period is $32,000.
• D)The owners' equity equals $182,000.

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Definitions:

Power (P)

In an electrical context, the rate at which electrical energy is transferred by an electric circuit, usually measured in watts.

Parallel Circuit

An electrical circuit where components are connected across common points or junctions, creating multiple paths for current flow.

Inductive Reactance

The opposition to the change of current flow through an inductor in an AC circuit, caused by the inductor's capacity to store energy in a magnetic field.

Phase

A term that denotes a specific stage in a cycle of a waveform, especially in the context of alternating current (AC) where it indicates the displacement between waveforms.