A Firm Has $2,500 of Cash,equipment Worth $45,000,inventory of $16,300,$14,000

question 57

Multiple Choice

A firm has $2,500 of cash,equipment worth $45,000,inventory of $16,300,$14,000 worth of patents,and $12,200 of accounts receivable.What is the value of the total current assets?

• A)$1,500
• B)$14,700
• C)$16,700
• D)$31,000
• E)$72,900

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; represents ownership equity in a firm.

Par Preferred Stock

A type of preferred stock that has a specified face value (par value) which determines the dividend calculation and has priority over common stock in dividend payments and upon liquidation.

Par Common Stock

The nominal or face value assigned to a share of common stock, as declared in the corporate charter, which has little bearing on the market value of the share.

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.