If Total Liabilities Are $18,000 and Owner's Equity Is $21,000,the

question 3

Multiple Choice

If total liabilities are $18,000 and owner's equity is $21,000,the total assets must be:

• A)$39,000.
• B)$5,000.
• C)$20,000.
• D)$17,000.

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Definitions:

Bank Statement Balance

The ending cash balance as recorded in the bank's records at the end of a reporting period.

Check Outstanding

A check that has been written and recorded in the issuing account but has not yet been cleared or cashed by the bank.

Bank Reconciliation

The process of comparing and adjusting the balance shown on a bank statement with the amount shown in a company’s records to ensure they match.

Internal Control

Procedures and policies implemented by a company to safeguard its assets, ensure accurate and reliable financial reporting, and comply with laws and regulations.