Use This Information to Answer the Following Question

question 55

Multiple Choice

Use this information to answer the following question. The total amount of working capital is

• A) $370,000.
• B) $40,000.
• C) $140,000.
• D) $60,000.

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Definitions:

Patent Amortization

The gradual expense recognition of a patent's cost over its useful life to reflect the consumption of the patent's value over time.

Net Income

Net income is the total profit of a company after all expenses, including taxes and operational costs, have been subtracted from total revenue.

Accounts Payable

The amount of money owed by a company to its creditors for goods and services purchased on credit.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.