If a Company Has $50,000 of Assets, Which of the Following

question 78

Multiple Choice

If a company has $50,000 of assets, which of the following could be true?

• A) It has -$50,000 in stockholders' equity and $100,000 in liabilities.
• B) The company has fewer assets than it does liabilities.
• C) It has $30,000 in liabilities and $80,000 in owners' equity.
• D) The company has more owners' equity than assets.
• E) It has $23,000 in owners' equity and $27,000 in liabilities.

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Definitions:

Performance

The act of carrying out a task or function, often evaluated in terms of effectiveness, efficiency, or skill.

Creative Insights

Sudden realizations or understanding that provide unique problem-solving ideas.

Incubation

Incubation is the process of maintaining controlled environmental conditions to facilitate the development of embryos or the growth of microorganisms.

Unconsciously

Operating or existing outside of conscious awareness or perception.