Mandich Co

question 81

Multiple Choice

Mandich Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation: Of the salaries payable, $30,000 was owed to an officer of the company. The remaining amount was owed to salaried employees who had not been paid within the previous 80 days: John Webb was owed $10,600, Samantha Jones was owed $15,000, Sandra Johnson was owed $11,900, and Dennis Roberts was owed $2,500. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for administering the liquidation amounted to $40,000.
On a statement of financial affairs, what amount would have been shown as assets available to pay liabilities with priority and unsecured creditors?

• A) $390,000.
• B) $445,000.
• C) $495,000.
• D) $660,000.
• E) $795,000.

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Definitions:

Feedback

Information provided about reactions to a product, a person's performance of a task, etc., used as a basis for improvement.

Job Enrichment

Enhancing a job's design by adding duties and responsibilities that increase the employee's satisfaction and motivation, often by incorporating more meaningful tasks.

Intrinsic Reward

Refers to the psychological satisfaction or personal fulfillment derived from achieving or completing a task, rather than from external rewards.

Work Ethic

The principle that hard work is intrinsically virtuous or worthy of reward.