Use the Following Data to Determine the Total Dollar Amount

question 86

Multiple Choice

Use the following data to determine the total dollar amount of assets to be classified as current assets.

• A)$390,000
• B)$250,000
• C)$570,000
• D)$330,000

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Definitions:

Notes Payable

A financial liability representing a written promise to pay a specific sum of money on a specified future date.

Accounts Payable

A liability account that tracks money owed by a business to suppliers or creditors for goods and services received.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Net Income

The amount of earnings remaining after all expenses, including taxes and operational costs, have been deducted from total revenue; a measure of company profitability.