At the Time of Liquidation,Fairchild Company Reported Assets of $200,000,liabilities

question 44

Multiple Choice

At the time of liquidation,Fairchild Company reported assets of $200,000,liabilities of $120,000,common stock of $90,000 and retained earnings of ($10,000) .What amount of Fairchild's assets are the shareholders entitled to receive?

• A)$200,000
• B)$80,000
• C)$90,000
• D)$100,000

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Definitions:

Decision Variables

Choices available to a decision maker.

Linear Programming

A mathematical technique used for optimization of resources, which involves linear equations to represent constraints and an objective function to maximize or minimize.

Objective Function

A mathematical function used in optimization to represent the goal that needs to be achieved, often minimizing or maximizing some quantity.

Linear Programming

A mathematical method for determining the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear relationships.