If the Building Is Sold for $50,000, What Amount Should

question 25

Multiple Choice

If the building is sold for $50,000, what amount should Waters receive in the final settlement?

• A) $ 5,000.
• B) $ 9,000.
• C) $18,000.
• D) $28,000.
• E) $55,000.

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Definitions:

Assets

Resources owned by a business, expected to bring future economic benefits.

Liabilities

Debts or financial responsibilities that a business has to other entities, requiring repayment over a period through the exchange of economic resources such as cash, products, or services.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, essentially representing the owner's claim against the company's assets.

Expense

The outflow of resources such as cash and other valuables, incurred in the process of generating revenues.