Solve the Problem. -During His First Year of College, John Incurs the Following

question 90

Multiple Choice

Solve the problem.
-During his first year of college, John incurs the following expenses: $3000 on tuition, $1000 on books, $3600 on food, and $8000 on rent. If John earned $9000 during the year by working Part-time, and the rest of the expenses were paid by his parents, how much did his parents pay?

• A)$4600
• B)$24,600
• C)$6600
• D)$5600

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Owner's Equity

Owner's equity represents the owner's claims on the assets of the business, calculated as total assets minus total liabilities.

Creditors' Risk

The level of risk that creditors face regarding the possibility of not receiving back the principal and/or interest on loans issued to borrowers.

CPA

Certified Public Accountant, a designation given to someone who has passed the Uniform CPA Examination and met additional state education and experience requirements in accounting.