Determine the Dollar Amount of Total Assets for a Venture

question 20

Multiple Choice

Determine the dollar amount of total assets for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

• A) $100,000
• B) $250,000
• C) $375,000
• D) $500,000
• E) $650,000

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Definitions:

Schedule A

A form used in the United States tax system for itemizing allowable deductions against personal income to reduce taxable income.

Tax Rate Schedule

A chart or table that determines the amount of tax due based on income brackets, applicable to different filing statuses.

Total Income

The aggregate amount of income earned by an individual or entity from all sources before any deductions or taxes.

Deductions

Expenses that can be subtracted from gross income to reduce taxable income, such as mortgage interest, medical expenses, and charitable contributions.