You Are Solvent If Your

question 77

Multiple Choice

You are solvent if your

• A)total liabilities exceed total assets.
• B)total assets exceed total liabilities.
• C)total assets exceed net worth.
• D)total liabilities exceed net worth.
• E)none of these.

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit or loss over a specific period of time.

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, not when they are incurred.

Accounts Receivable

Receivables from clients for goods delivered or services performed by a company, which have not yet been paid for.