Use This Balance Sheet and Income Statement to Answer the Following

question 119

Multiple Choice

Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios.

-The total amount of working capital for National Textile is

• A)$2,000.
• B)$6,000.
• C)$4,000.
• D)$30,000.

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Definitions:

Accounts Payable

Liabilities or amounts owed by a business to its suppliers for goods and services received but not yet paid for.

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Recorded Increases

Entries in financial records that reflect an increase in assets, revenues, or any account that adds to the net worth or net income of a company.

Debited

In accounting, this term indicates that an entry has been made to the left side of an account, increasing assets or expenses, or decreasing equity, liability, or revenue.