Marvin Services Corporation Had the Following Accounts and Balances

question 33

Multiple Choice

Marvin Services Corporation had the following accounts and balances: If the balance of the Buildings account was $85,000, what would be the total of liabilities and stockholders' equity?

• A)$170,000
• B)$175,000
• C)$135,000
• D)$125,000

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Definitions:

Saving

The portion of income not spent on immediate consumption but set aside for future use, typically in bank accounts, investments, or other forms of financial savings.

Disposable Income

The spending and saving financial capacity of households after deductions for income taxes.

MPC

Marginal Propensity to Consume - the proportion of any additional income that is spent on consumption rather than being saved.

Consumption

The act of using goods and services for personal use, often considered in economic terms as an indicator of economic health.