The Balance Sheet of Ryan and Peter Firm as on December

question 99

Multiple Choice

The balance sheet of Ryan and Peter firm as on December 31, 2017, is given below. Ryan and Peter share profits in the ratio 3:2. They have decided to liquidate the partnership with immediate effect. The furniture and the equipment were sold at a cumulative loss of $50,000. The accounts receivable were duly received in cash and the other assets were written off as worthless. The cash balance remaining to pay the liabilities is ________.

• A) $17,000
• B) $94,000
• C) $44,000
• D) $40,000

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Definitions:

Expected Return

The anticipated gain or loss on an investment, considering both the risk and return.

Expected Return

Expected return is the anticipated profit or loss from an investment, based on the potential outcomes and their probabilities, often used to evaluate investment choices.

Risky Asset

An asset that carries a degree of risk that the value or return could be higher or lower than expected.

Future

Represents the time period that has not occurred yet, often used in the context of predicting economic, financial, or technological developments.