The Assets of a Company Total $700,000; the Liabilities,$200,000

question 142

Multiple Choice

The assets of a company total $700,000; the liabilities,$200,000.What are the total claims of the owners?

• A)$900,000
• B)$700,000
• C)$500,000
• D)$200,000
• E)It is impossible to determine unless the amount of owners' investment is known.

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Definitions:

Machine Hours

A measure of production output or activity based on the number of hours machinery is in operation, used in cost accounting to allocate expenses to products.

Cost of Quality Report

A detailed report that quantifies the total cost of quality-related efforts and deficiencies.

Activity Costs

The expenses associated with a specific business activity or operation.

Lean Manufacturing

A planned procedure for cutting down on waste in manufacturing operations without negatively affecting productivity.