If Assets Are $365,000 and Equity Is $120,000, Then Liabilities

question 111

Multiple Choice

If assets are $365,000 and equity is $120,000, then liabilities are:

• A) $120,000.
• B) $245,000.
• C) $365,000.
• D) $485,000.
• E) $610,000.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production costs.

Operational Costing

The method of calculating the expenses associated with the day-to-day running of a business, including costs of manufacturing and services.

Food Processors

Kitchen appliances used to facilitate repetitive tasks in the preparation of food, such as chopping or mixing.

Large Scale

Operations or activities conducted on a wide-ranging or extensive basis, often implying significant impact or size.