Table 4-2
the Ledger Accounts for Alice's Rentals Include the Following

question 79

Multiple Choice

Table 4-2
The ledger accounts for Alice's Rentals include the following normal balances as of December 31, 2019: $$\begin{array} { | r | r | } \hline \text { Accumulated amortization } & \$ 2,000 \\\hline \text { Cash } & 7,300 \\\hline \text { Equipment } & 15,000 \\\hline \text { Alice Normanson, Capital } & 9,300 \\\hline \text { Alice Normanson, Withdrawals } & 2,200 \\\hline \text { Prepaid rent } & 3,600 \\\hline \text { Accountspayable } & 7,800 \\\hline \text { Supplies } & 1,200 \\\hline \text { Unearned revenue } & 1,600 \\\hline \text { Notes payable (due Dec. } 31,2023 ) & 7,500 \\\hline\end{array}$$
-Referring to Table 4-2, what are the total current assets and total assets for Alice's Rentals?

• A)$12,100 and $25,100
• B)$8,500 and $27,100
• C)$8,500 and $21,500
• D)$12,100 and $27,100

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Definitions:

Present Value

The present value of a future amount of money or series of cash flows at a given rate of return.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Risk Averse

A descriptor for individuals or entities that prefer to minimize exposure to risk and avoid uncertain outcomes.

Risk and Return

The principle that potential return on investment rises with an increase in risk. Higher risk is associated with the greater probability of higher return and vice versa.