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:

Calendar Year

The one-year period that begins on January 1 and ends on December 31, used for most civil purposes and by many businesses as a fiscal year.

Work Week

A work week refers to the standard period of time during which an employee is expected to work, usually defined by the employer, and often consisting of 40 hours.

FICA-OASDI

Taxes collected under the Federal Insurance Contributions Act for Old Age, Survivors, and Disability Insurance, commonly known as Social Security.

Cumulative Earnings

The total amount of net income a company has earned over a specific period until the present date, not including dividends.