The Balance Sheet of Incrad Clothes,LLC,as of December 31,2017 Is

question 51

Multiple Choice

The balance sheet of Incrad Clothes,LLC,as of December 31,2017 is presented below. $$\begin{array} { | l | r | l | r | } \hline \text { Assets } & & \text { Liabilities } & \\\hline \text { Cash } & \$ 15,000 & \text { Accounts payable } & \$ 12,000 \\\hline \text { Merchandise inventory } & 56,000 & \text { Bank Loan } & 25,000 \\\hline \text { Furniture } & 12,000 & \text { Partner's Equity } & \\\hline \text { Computer } & 15,000 & \text { Chad, Capital } & 45,000 \\\hline \text { Other assets } & \underline { 22,000 } & \text { Brad, Capital } & \underline { 38,000 } \\\hline& & \text { Total Liabilities and } & \\ { \text { Total Assets } } & \$ 120,000& \text { Partner's Equity } & \$ 120,000 \\\hline \end{array}$$ Which of the following statements is TRUE regarding Incrad's balance sheet?

• A) The computer was purchased at a cost less than $15,000.
• B) The bank loan of $25,000 should be considered part of the Partner's Equity.
• C) Brad and Chad have limited liabilities for the partnership's debts because it is a limited liability company.
• D) The current market value of the furniture is $12,000.

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Definitions:

Superiority

A belief or attitude that one person or group is better than another, often leading to prejudiced behavior or discrimination.

Personality Development

The ongoing process by which an individual's character patterns of thought, feelings, and behaviors develop over time.

Adler

Refers to Alfred Adler, an Austrian medical doctor and psychotherapist, founder of the school of individual psychology.

Introvert

A personality type characterized by a preference for solitary activities and environments that are not overly stimulating, often involving introspective and reflective behaviors.