If Assets Are $175,000 and Equity Is $47,000, Then Liabilities

question 186

Multiple Choice

If assets are $175,000 and equity is $47,000, then liabilities equal

• A)$175,000.
• B)$128,000.
• C)$47,000.
• D)$222,000.
• E)$204,000.

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Definitions:

Intra-entity Gross Profit

Profits resulting from transactions within the same entity, often requiring adjustment during the consolidation process for accurate financial reporting.

January 1 Retained Earnings

The amount of net income left over for a company from the previous fiscal year, reported at the start of the new year on January 1.

Downstream Transfer

A transaction or movement of goods, services, or funds from a parent company to a subsidiary or from a higher level to a lower level within an organizational structure.

Upstream Transfer

A transfer of assets or resources from a subsidiary to its parent company, often examined for tax and financial reporting implications.