At What Amount Should the Equipment (Net of Depreciation) Be

question 16

Multiple Choice

At what amount should the equipment (net of depreciation) be included in the consolidated balance sheet dated December 31, 2018?

• A) $110,000.
• B) $105,000.
• C) $100,000.
• D) $ 90,000.
• E) $ 60,000.

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Definitions:

Debt Ratio

A financial ratio that measures the extent of a company’s leverage, calculated by dividing total liabilities by total assets.

Total Debt

The sum of all liabilities, both short and long term, that a company owes.

Cash In Hand

The amount of liquid money or physical currency that a company or individual has readily available.

Bills Receivable

Financial documents representing money owed to a business by its customers that is payable within a short period.