The Following Information Is for Central Avenue Real Estate The Total Dollar Amount of Liabilities to Be Classified as \text

question 227

Multiple Choice

The following information is for Central Avenue Real Estate: $\begin{array}{c} \text { Central Avenue Real Estate}\\ \text { Balance Sheet }\\ \text { December 31, 2016}\\\\\begin{array}{lll} \text { Cash}& & \$ 25,000 \\ \text { Prepaid Insurance } & & 40,000 \\ \text { Accounts Receivable } & & 50,000 \\ \text {Inventory} & & 80,000 \\\text {Land Held for Investme } & & 75,000 \\\text {Land }& & 120,000 \\ \text { Building } & \$ 110,000 & \\\text { Less Accumulated } \\\text { Depreciation } & (20,000) &90,000 \\ \text { Trademark } & &70,000 \\ \text {Total Assets}&&\$550,000\\\end{array}\begin{array}{lr}\text { Accounts Payable } & \$ 60,000 \\\text { Salaries and Wages Payable } & 25,000 \\\text { Mortgage Payable } & 85,000\\\quad \text { Total Liabilities } & 170,000\\\\\\\\\text { Owner's Capital } &380,000 \\\\\text { Total Liabilities and } & \\\text { Owner's Equity } & \$ 550,0000\end{array}\end{array}$
The total dollar amount of liabilities to be classified as current liabilities is

• A) $25000.
• B) $60000.
• C) $85000.
• D) $170000.

---

Definitions:

Expected Monetary Value(EMV)

A calculated average of all possible outcomes of a decision, where each outcome is weighted by its probability of occurring and its monetary impact.

Opportunity Loss Table

A table used in decision making to show the lost opportunities or costs associated with not choosing the best alternative.

Expected Monetary Value(EMV)

A method employed in making decisions that calculates the mean result in situations where the future holds potential but uncertain events.

Expected Monetary Value

The predicted average amount of money gained or lost from an investment or decision, calculated by considering all possible outcomes and their probabilities.