The Assets of Moon Company Are $150,000 and Liabilities Are

question 9

Multiple Choice

The assets of Moon Company are $150,000 and liabilities are $90,000. The equity will be:

• A)$180,000.
• B)$300,000.
• C)$240,000.
• D)$60,000.

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Definitions:

Depreciation Expense

Depreciation expense represents the systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Floral Deliveries

The service of transporting flowers or floral arrangements to specified locations, often as part of a floristry business.

Units-Of-Activity

A depreciation method where the useful life of an asset is based on the number of units it produces or the hours it operates, rather than time.

Salvage Value

Predicted value upon resale of an asset at the end of its practical life.