Your Partnership Business Has Liabilities of $38,000

question 80

Multiple Choice

Your partnership business has liabilities of $38,000. If your equity is $85,000, what is the amount of your assets?

• A) $103,000
• B) $123,000
• C) $122,000
• D) $108,000

---

Definitions:

Insignificant Influence

A situation in which an investor does not have the power to govern the financial and operating policies of an investee.

Stock Investment

Purchasing shares of a company's stock to potentially earn dividends or sell at a higher price for profit, considered a form of investing.

Fair Value

An estimated market value of an asset or liability, based on current conditions and willing buyer and seller scenarios.

Insignificant Influence

Refers to a situation where an investor does not have the power to govern the financial and operating policies of an investee, typically resulting in the investment being accounted for using the cost method or fair value method.