The Assets and Liabilities of Matt Wesley Mechanics Are as Follows

question 114

Multiple Choice

The assets and liabilities of Matt Wesley Mechanics are as follows: Cash, $10 000; Accounts receivable, $8 200; Supplies, $1 050; Land, $25 000; Accounts payable, $6 530. What is the amount of owners' equity?

• A)$44 430
• B)$37 720
• C)$21 500
• D)$50 780

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Definitions:

Order for Relief

A court order in bankruptcy proceedings that gives the petitioner protection from creditors and approves the commencement of bankruptcy processes.

Chapter 13

A type of bankruptcy that allows individuals earning a regular income to create a plan to repay all or part of their debts.

Payment Period

The duration of time during which a debtor is obligated to make a payment to a creditor.

Bankruptcy Code

The body of federal law that governs the process of bankruptcy in the United States, allowing individuals or entities in financial distress to discharge or reorganize their debts.