Sawaddee Enterprises Began the Year with Total Assets of $450,000

question 42

Multiple Choice

Sawaddee Enterprises began the year with total assets of $450,000 and total liabilities of $230,000.If Sawaddee's total assets doubled to $900,000 and its owners' equity remained the same during the year, what was the amount of its total liabilities at the end of the year?

• A)$670,000
• B)$680,000
• C)$440,000
• D)$900,000

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Definitions:

Legal Consideration

An essential element in contract law that refers to something of value exchanged between parties as part of an agreement, which is necessary for the contract to be enforceable.

Promissory Estoppel

A legal principle that enforces a promise in absence of a formal contract, provided individuals have acted in reliance on that promise.

Past Service

The period of service that is counted for the purposes of calculating pensions or other benefits, often before the current benefit plan was in place.

Consideration Requirement

In contract law, this is a necessary element that refers to something of value promised in exchange for a specific action or non-action.