Spring Company Has Assets and Equity That Amount to $220,000

question 1

Multiple Choice

Spring Company has assets and equity that amount to $220,000 and $20,000, respectively. Liabilities total ________.

• A) $20,000
• B) $200,000
• C) $220,000
• D) $240,000

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Definitions:

Corrected Cash Balance

An adjustment made to a company's book balance of cash to reflect accurate amounts after reconciliation.

Bank Service Charges

Fees charged by banks for account maintenance, transactions, and other financial services provided to customers.

Book Balance

The amount of money a company reports in its financial statements, not necessarily reflecting the actual cash available.

Factoring

Factoring is a financial transaction where a business sells its accounts receivable to a third party, called a factor, at a discount.