The Equity of Alliance Company Is $100,000 and the Total

question 5

Multiple Choice

The equity of Alliance Company is $100,000 and the total liabilities are $10,000.The total assets are ________.

• A) $200,000
• B) $20,000
• C) $90,000
• D) $110,000

---

Definitions:

Net Credit Sales

The total value of sales made on credit minus returns and allowances, reflecting the actual credit sales revenue generated.

Accounts Receivable

Amounts owed to a company by customers for products or services that have been delivered but not yet paid for.

Average Collection Period

A financial metric that calculates the average number of days it takes for a company to receive payments from its customers.

Net Sales

Income generated from sales once returns, allowances for damaged or missing items, and discounts have been subtracted.