If Assets Are $99,000 and Liabilities Are $32,000, Then Equity

question 150

Multiple Choice

If assets are $99,000 and liabilities are $32,000, then equity equals:

• A) $131,000.
• B) $32,000.
• C) $198,000.
• D) $67,000.
• E) $99,000.

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Definitions:

Adjusting Entry

An adjusting entry is a journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Physical Count

A method used in inventory management to ensure the actual number of items in stock matches the recorded numbers by counting them manually.

Interest Payable

Interest payable is the amount of interest expense that has been incurred but not yet paid by a borrower as of a specific date.

Annual Interest

The total amount of interest paid or earned over a one-year period, commonly associated with loans, savings, and investments.