The Cheese Shoppe's Liabilities Total $59,000 and Its Owners' Equity

question 215

Multiple Choice

The Cheese Shoppe's liabilities total $59,000 and its owners' equity is $124,000. Which of the following is true?

• A) The total assets equal $65,000.
• B) The firm's assets are $124,000.
• C) The current liabilities are less than the current assets.
• D) The total assets equal $183,000.
• E) The firm's sales are $183,000.

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Definitions:

Maximum Utility

The highest level of satisfaction or benefit that a consumer can obtain from the consumption of goods and services within the constraints of their income and prices.

Consumer Income

The total amount of money earned by individuals or households that can be used for saving, spending, or investing.

MU y/ Pᵧ

MU y/ Pᵧ represents the marginal utility of good "y" divided by its price, a concept in economics used to analyze consumer choice, indicating the additional satisfaction per unit of currency spent on that good.

Maximize Utility

The economic principle of selecting the option that yields the highest satisfaction or benefit.