If Assets Have a Balance of $80,000 and Stockholders' Equity

question 48

Multiple Choice

If assets have a balance of $80,000 and stockholders' equity has a balance of $60,000, then liabilities must have a balance of:

• A) $140,000.
• B) $60,000.
• C) $80,000.
• D) $20,000.

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Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good or service at a lower opportunity cost than others.

Specialize

To focus on a specific area of knowledge, skill, or production, often improving efficiency and quality in the process.

Produce

To create, manufacture, or grow goods and products.

Heckscher-Ohlin Model

An economic theory that proposes countries export what they can most efficiently and abundantly produce, based on their factor endowments of labor, capital, and resources.