Leslie Started a Computer Software Firm by Investing $16 000

question 12

Multiple Choice

Leslie started a computer software firm by investing $16 000 of her own money. She spent three-quarters of it on furniture, fixtures and operating supplies for the business. After borrowing $12 000 from First National Bank, she spent one-third of the funds on computer hardware. At that point in time what balances should be recorded in her accounting system for total assets and total expenses? Total Assets Total Expenses

• A) $28 000$16 000
• B) $12 000$16 000
• C) $16 000 $0
• D) $28 000 $0

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Definitions:

American Depository Receipts

Certificates issued by U.S. banks representing a specified number of shares in a foreign company's stock, traded on U.S. financial markets.

S&P 500 Portfolio

A portfolio of investments that aims to mimic the performance of the S&P 500, a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

Market Portfolio

A theoretical portfolio of all investable assets, weighted by market capitalization, that represents the entire market.

World Equities

Shares in companies located around the globe, representing ownership across different countries and industries.