The Following Are the Ending Month's Balances for Toys Galore

question 7

Multiple Choice

The following are the ending month's balances for Toys Galore. $\begin{array} { | l | r | } \hline \text { Accounts payable } & \$ 6,790 \\\hline \text { Revenue } & 8,680 \\\hline \text { Cash } & 4,500 \\\hline \text { Expenses } & 1,050 \\\hline \text { Furniture } & 8,370 \\\hline \text { Accounts receivable } & 7,710 \\\hline \text { Capital } & 930 \\\hline \text { Notes payable } & 5,230 \\\hline\end{array}$ What is the total amount of credits for the trial balance?

• A)$21,630
• B)$16,400
• C)$20,580
• D)$30,310

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Definitions:

Residual Value Guarantees

Promises made by lessees to lessors that the asset being leased will have a certain value at the end of the lease term.

Lessors

Parties that lease or rent out assets to lessees in exchange for periodic payments.

Leased Assets

Assets that are used by an entity under the terms of a lease agreement, which entails periodic payments for a specified time.

Operating Leases

Lease agreements for a shorter period than the asset's useful life, where the lessee does not assume the risks and rewards of ownership.