On August 31 of the Current Year,the Assets and Liabilities

question 242

Multiple Choice

On August 31 of the current year,the assets and liabilities of Gladstone,Inc.are as follows: Cash $30,000; Supplies,$600; Equipment,$10,000; Accounts Payable,$8,500.What is the amount of equity as of August 31 of the current year?

• A)$49,100.
• B)$32,100.
• C)$12,100.
• D)$10,900.
• E)$30,900.

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Definitions:

Subsequent Event

Events occurring after the balance sheet date but before the financial statements are issued or available to be issued, which may affect the readers' understanding.

Discounted Note

A promissory note whose proceeds at issuance are less than its face value, due to interest being deducted or discounted in advance.

Borrowing Funds

The act of obtaining money from external sources, like banks or investors, which must usually be repaid with interest.

Interest Expense

The cost incurred by an entity for borrowed funds, payable to lenders as a finance charge over the term of the loan.