If the Assets of Martin's Pet Store Are $107,000 and the Owners

question 17

Multiple Choice

If the assets of Martin's Pet Store are $107,000 and the owners' equity is $75,000, which of the following is a true statement?

• A) The owners' investment equals $182,000.
• B) The current assets are worth $32,000.
• C) The new income for the period is $32,000.
• D) The long-term liabilities are $75,000.
• E) The liabilities are $32,000.

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Definitions:

Pure Communism

An idealized form of communism where there is no class division, the state has withered away, and the means of production are communally owned, leading to equal distribution of resources.

Capitalism

An economic system where private individuals rather than the state own and operate the means of production and distribution, driven by the motive of profit.

Socialism

An economic system based on the collective ownership of the means of production, collective distribution of goods and services, and government regulation.

Cultural Capital

The tastes, habits, expectations, skills, knowledge, and other cultural assets that help us gain advantages in society.