Hemd Company Has Liabilities Equal to One Fourth of the Total

question 61

Essay

Hemd Company has liabilities equal to one fourth of the total assets. Hemd's shareholders'equity is €60,000. Using the accounting equation, what is the amount of liabilities for Hemd?

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Definitions:

Direct Labor

The labor costs of workers who are directly involved in the production of goods or services.

Indirect Labor

Labor costs not directly tied to the production of goods or services, such as maintenance staff and supervisors.

Work in Process

Goods partially completed in manufacturing, not yet ready for sale.

Raw Materials

The basic materials from which a product is made, used in the early stages of the production process.