LPR Is a Company That Commenced Business on 1 January

question 44

Multiple Choice

LPR is a company that commenced business on 1 January 2016. Below are the balances in the 30 June 2016 financial statements.

What is the balance of liabilities?

• A) $18 000
• B) $30 000
• C) $20 000
• D) $21 000

---

Definitions:

Utility-Maximizing

The process by which individuals choose consumption bundles that will give them the greatest amount of satisfaction or utility.

Diminishing Marginal Utility

The decrease in satisfaction or usefulness as additional units of a product are consumed.

Staples

Basic or essential food items or goods that are widely used and regularly consumed by households.

Paper Clips

Tiny segments of twisted wire or plastic designed to keep pages of paper attached.