If Total Assets Equal $345,000 and Total Stockholders' Equity Equal

question 251

Multiple Choice

If total assets equal $345,000 and total stockholders' equity equal $140,000, then total liabilities must equal

• A) $485,000.
• B) $205,000.
• C) $140,000.
• D) There is not enough information given to determine this.

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Definitions:

Receivables

Short-term amounts due to a company from its customers, typically from sales of goods or services on credit.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Inventory

The total amount of goods or materials a business has in stock, potentially for sale or production.

Outlived Usefulness

Refers to an asset or item that has exceeded its functional or strategic value to an organization or individual.