As of December 31, 2022, Calexico Company Has Assets of $42,000

question 106

Multiple Choice

As of December 31, 2022, Calexico Company has assets of $42,000 and stockholders' equity of $20,000.What are the liabilities for Calexico Company as of December 31, 2022?

• A)$22,000
• B)$20,000
• C)$42,000
• D)$62,000

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Definitions:

ASPE

Accounting Standards for Private Enterprises; a set of accounting practices and principles for private companies in Canada.

Accounting Standards

Officially recognized principles and rules that guide how financial statements are prepared and presented.

Privately Held Companies

Businesses whose shares are not traded on public stock exchanges and are usually owned by the company founders, management, or a group of private investors.

Acquisition Differential

The difference between the purchase price of an acquired entity and the fair value of its net assets.