The Resources Owned by David's Spa and Salon Total $148,000

question 160

Multiple Choice

The resources owned by David's Spa and Salon total $148,000. The total amount of debt that it owes to others is $87,000. Which of the following about David's Spa and Salon is true?

• A) Owners' equity is $87,000.
• B) Owners' equity is $61,000.
• C) Liabilities are $148,000.
• D) Liabilities are $61,000.
• E) The firm has more owners' equity than liabilities.

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Definitions:

Relative Frequency

The proportion of times a particular value or event occurs in relation to the total number of observations or trials.

Historical Data

Data collected from past events used to analyze trends, forecast future occurrences, or establish baselines in various fields like finance, meteorology, or scientific research.

Sunny Day

A day characterized by sunshine with little to no cloud cover, indicating clear weather conditions.

Probability

Probability is the measure of the likelihood that an event will occur, expressed as a number between 0 and 1.