Able Co Has $500,000 in Assets and $400,000 in Liabilities

question 29

True/False

Able Co. has $500,000 in assets and $400,000 in liabilities. Therefore, the equity is $900,000.

---

Definitions:

Utilities Cost

The expenses incurred for utilities consumed by a business, such as electricity, water, and gas.

Administrative Expense

Costs related to the general management and administration of a company, not directly tied to any specific department or product.

Cost Described

A term that could refer to the detailed explanation or breakdown of the expenses associated with a particular object, activity, or project. If this term is assumed not standard, answer would be NO.

Contribution Margin

The amount by which a product's sales revenue exceeds its variable costs, contributing towards covering fixed costs and generating profit.