Davis Computer Company Has Total Liabilities of $50 000, Total

question 65

Multiple Choice

Davis Computer Company has total liabilities of $50 000, total assets of $280 000 and paid-up capital of $120 000. What is the amount of retained earnings and/or reserves?

• A) $20 000
• B) $110 000
• C) $140 000
• D) $160 000

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Definitions:

Eardrum

A delicate layer dividing the outer ear from the middle ear, which responds to sound waves by vibrating.

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A term describing a condition in which an individual has difficulty distinguishing between certain colors, typically red and green.

Shades of Gray

A metaphorical expression indicating the complexity of situations, decisions, or issues, which are not simply categorized into binary options like right or wrong.

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A heavy iron block used in metalworking, traditionally featured with a flat surface and a pointed end, serving as a surface upon which metal can be hammered and shaped.