Sawaddee Enterprises Began the Year with Total Assets of $450,000

question 134

Multiple Choice

Sawaddee Enterprises began the year with total assets of $450,000 and total liabilities of $230,000.If Sawaddee's total assets doubled to $900,000 and its owners' equity remained the same during the year,what was the amount of its total liabilities at the end of the year?

• A)$220,000
• B)$680,000
• C)$780,000
• D)$900,000

---

Definitions:

Hedonic Treadmill

A theory suggesting that people continually seek higher levels of wealth, status, or possessions but do not achieve lasting increases in happiness.

Prospect Theory

A theory in behavioral economics that explores how individuals make decisions between options involving risk with uncertain outcome probabilities.

Behavioral Insights Team

A group of experts, often in government or organizations, applying behavioral science principles to design policies or interventions that improve public services and policy outcomes.

Income Tax

A tax levied by the government directly on financial income generated by all entities within their jurisdiction.