The Assets of a Company Total $700,000; the Liabilities,$200,000

question 35

Multiple Choice

The assets of a company total $700,000; the liabilities,$200,000.What are the net assets?

• A)$900,000.
• B)$700,000.
• C)$500,000.
• D)$200,000.
• E)It is impossible to determine unless the amount of stockholder investments is known.

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Definitions:

Constant-Cost Industry

An industry in which the costs of production, including input prices, do not change as the industry's output changes.

Economic Profits

Profits calculated after subtracting both the explicit and implicit costs from total revenues; also known as supernormal profits.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing additional earnings beyond the normal profit level.

Industry Entry

The process of a new competitor or company beginning operations in a particular market.