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

question 40

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 owner's equity as of August 31 of the current year?

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

---

Definitions:

Independent Contractor

A person who is hired to perform a task for another but who is not the other’s employee.

Employee

An individual who works for an employer and is entitled to receive compensation in exchange for their labor or services.

Independent Contractor

An individual who provides services to another entity under terms specified in a contract or within a verbal agreement, unlike an employee who works regularly for a single employer.

Supervision

The act of overseeing or managing activities and personnel to ensure that tasks are performed correctly, safely, and efficiently.