If Equity Is $300,000 and Liabilities Are $192,000, Then Assets

question 157

Multiple Choice

If equity is $300,000 and liabilities are $192,000, then assets equal:

• A) $300,000.
• B) $792,000.
• C) $192,000.
• D) $492,000.
• E) $108,000.

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Definitions:

Consignor

The entity that owns goods but entrusts them to another (consignee) for sale, distribution, or safekeeping.

Inventory

The raw materials, work-in-progress products, and finished goods that are considered to be the portion of a business’s assets that are ready or will be ready for sale.

Price Decline

Price decline refers to a decrease in the value or cost of an asset or commodity over a period, often influenced by market conditions or changes in supply and demand.

Write Down

The reduction in the book value of an asset when its fair market value has fallen below its current book value.