Martin's Spa and Salon's Assets Total $148,000

question 189

Multiple Choice

Martin's Spa and Salon's assets total $148,000.The total amount of debt that it owes to others is $87,000.Which of the following is correct?

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

---

Definitions:

Demographic Transition View

A model explaining how changes in birth and death rates can affect the age and growth dynamics of a population over time.

Opportunity Costs

The value of the next best alternative that is foregone when a decision is made.

Underemployment

A situation in which workers are employed below their skill level or work fewer hours than they would prefer.