Desert Company Has Retained Earnings of $11,000, Total Assets Totaling

question 15

Multiple Choice

Desert Company has retained earnings of $11,000, total assets totaling $41,000, and total liabilities of $20,000. How much is total shareholders' equity?

• A)$8,000
• B)$19,000
• C)$21,000
• D)$27,000

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Definitions:

Resources

The total means available for economic and political development, such as minerals, labor, and capital.

Pareto Optimal

A situation in economics where resources are allocated in the most efficient manner, making it impossible to reallocate without making at least one individual worse off.

Trades

The action of buying and selling goods and services, which can occur domestically within a country or internationally between countries.

Societal Members

Individuals who constitute a society, participating in its culture, norms, and economic activities.