The Following Information Pertains to Des Moines Company Invested Capital Is _____ If It Is Defined as Total

question 165

Multiple Choice

The following information pertains to Des Moines Company: $\begin{array}{llll}\text { Current assets } & \$ 100,000 & \text { Current liabilities } & \$ 175,000\\\text { Property, plant and } \\\\\text { equipment } & 150,000 & \text { Long-term liabilities } & 100,000 \\\text { Construction in progress } & 50,000 & \text { Stockholders' equity } & 25,000\\\text { Total assets }&\$300,000&\text { Total assets }&\$300,000\end{array}$ Invested capital is _____ if it is defined as total assets less current liabilities.

• A)$300,000
• B)$250,000
• C)$125,000
• D)$100,000

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Definitions:

Corporation

A corporation is a legal entity that is separate and distinct from its owners, possessing many of the rights and responsibilities of an individual, including the ability to enter contracts, sue, and be sued.

Shareholders

Individuals or entities that own shares in a company, giving them partial ownership and possibly voting rights.

Managing

The process of planning, leading, organizing, and controlling resources, such as human capital and financial assets, to achieve organizational objectives efficiently and effectively.

Corporation

A legal entity that is separate and distinct from its owners, providing limited liability to its shareholders.