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:

Permanent Cessation

The irreversible end of an activity, function, or existence; often used in reference to the cessation of biological life or specific bodily functions.

Heart Beat

The rhythmic expansion and contraction of the heart, which indicates the flow of blood through the body.

Traditional

Pertaining to customs, practices, and norms that have been passed down through generations within a specific culture or society.