The Following Items Are Taken from the Financial Statements of the Freight

question 31

Multiple Choice

The following items are taken from the financial statements of the Freight Service for the year ending December 31 2016: $\begin{array}{lr}\text { Accounts payable } & 19,000 \\\text { Accounts receivable } & 13,000 \\\text { Accumulated depreciation - equipment } & 26,000 \\\text { Advertising expense } & 21,200 \\\text { Cash } & 15,000 \\\text { Owner's capital }(1 / 1 / 16) & 104,000 \\\text { Owner's drawings } & 11,000 \\\text { Depreciation expense } & 12,000 \\\text { Equipment } & 210,000\\\text { Insurance expense } & 3,800 \\\text { Note payable, due } 6 / 30 / 17 & 72,000 \\\text { Prepaid insurance (12-month policy) } & 7,200 \\\text { Rent expense } & 16,000 \\\text { Salaries and wages expense } & 32,000 \\\text { Service revenue } & 135,000 \\\text { Supplies } & 5,000 \\\text { Supplies expense } & 6,000\end{array}$ What is total liabilities and owner's equity at December 31 2016?

• A) $184000
• B) $228000
• C) $195000
• D) $239000

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Definitions:

Null Hypothesis

A default hypothesis that there is no significant difference or effect, used as a basis for statistical testing.

Weight Loss Strategy

A plan or approach designed to achieve a reduction in body weight, often involving changes in diet and exercise routines.

Critical Value

A point on the scale of a test statistic beyond which we reject the null hypothesis; it marks the threshold for statistical significance.

Sample Size

Sample Size refers to the number of observations or data points collected in a statistical sample.