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:

Corporate Insider

A person within an organization, typically an executive or employee, who has access to confidential or non-public information.

Short-swing Profits

Profits earned by corporate insiders from buying and selling their company's stock within a short timeframe, subject to specific legal regulations and reporting requirements.

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, aimed at protecting investors from fraud.