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:

Statement of Comprehensive Income

The comprehensive income statement is a financial document that encompasses all equity alterations within a period, excluding those caused by owner investments and distributions.

Cash Flow

The entire sum of cash and assets that are equivalent to cash being channeled into and out of a business venue.

Net Income

The total revenue minus expenses, taxes, and costs, representing the profit a company makes during a specific period.

Cash Flow from Operations

The net amount of cash generated by a company's normal business operations, reflecting how well it generates cash to fund its operating expenses and pay its debts.