If OPI Company's Assets Are $30,000 and Its Liabilities Are

question 4

Multiple Choice

If OPI Company's assets are $30,000 and its liabilities are $18,000, then the company's owner's equity is

• A) $12,000.
• B) $30,000.
• C) $18,000.
• D) $48,000.

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Definitions:

Comparative Financial Statement

Financial reports that present a company’s financial performance across different periods, allowing for comparison and analysis of trends.

Solvency

The ability of an entity to meet its long-term financial obligations and continue its operations into the foreseeable future.

Liquidity

The ease with which an asset or an investment can be converted into cash without significantly affecting its price.

Net Income

The remaining earnings of a company post all tax and expense deductions from its total sales.