A Firm Has $260,000 in Assets and $158,000 in Stockholders

question 115

Multiple Choice

A firm has $260,000 in assets and $158,000 in stockholders' equity. It owes $55,000 from a long-term loan, and this is its only long-term liability. This firm has ____ in total current liabilities.

• A) $55,000
• B) $103,000
• C) $47,000
• D) $102,000
• E) $213,000

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Definitions:

Alienation

A state of disconnection and isolation experienced by an individual or group, resulting from structural changes in society or personal relationships.

Capitalist Economy

An economic system where trade, industry, and the means of production are largely or entirely controlled by private owners for profit.

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist whose works form the basis of Marxism.

Commission

A group of individuals officially charged with a particular function or tasked with a specific project, often seen in governmental or organizational contexts.