Use This Balance Sheet and Income Statement to Answer the Following

question 44

Multiple Choice

Use this balance sheet and income statement to answer the following question. The total amount of working capital of Abner Systems is

• A) $0.
• B) $6,000.
• C) $2,000.
• D) $10,000.

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Definitions:

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within a year or within the normal operating cycle of a business.

Land and Building

Real estate assets including both the physical ground (land) and any structures (buildings) that are permanently attached to it.

Sales

The activities involved in selling goods or services in return for money or other compensation.

Net Income

The amount of money that remains after all operating expenses, taxes, and interest have been deducted from total revenue.