If a Company Has $50,000 of Assets, Which of the Following

question 86

Multiple Choice

If a company has $50,000 of assets, which of the following could be true?

• A) It has ―$50,000 in stockholders' equity and $100,000 in liabilities.
• B) The company has fewer assets than it does liabilities.
• C) It has $30,000 in liabilities and $80,000 in owners' equity.
• D) The company has more owners' equity than assets.
• E) It has $23,000 in owners' equity and $27,000 in liabilities.

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Definitions:

Factory Supplies

Materials and items used in a factory that do not directly go into a finished product but are necessary for manufacturing processes.

Factory Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and management salaries, excluding direct labor and materials.

Advertising Expense

Costs incurred in promoting products, services, or the brand itself through various media channels.

Selling

The process of persuading customers to purchase goods or services from a company.