If Equity Is $300,000 and Liabilities Are $192,000, Then Assets

question 81

Multiple Choice

If equity is $300,000 and liabilities are $192,000, then assets equal:

• A) $108,000.
• B) $192,000.
• C) $300,000.
• D) $492,000.
• E) $792,000.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset over its useful life.

Venture Capital

A form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential.

Line-by-Line Method

An accounting method for consolidating the financial statements of a parent company and its subsidiaries by adding together similar items line by line.