The Balance Sheet of the Chesapeake Company Contained the Following

question 93

Multiple Choice

The balance sheet of the Chesapeake Company contained the following accounts and balances: $$\begin{array} { | l | l | l | c | } \text { Cash } & \$ 600 & \text { Notes Payable } & \$ 300 \\\hline \text { Equily } & \$ 450 & \text { Land } & ?\end{array}$$ Based on the above information only, the amount or balance for Land must be

• A) $450.
• B) $750.
• C) $150.
• D) $1,350.

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Definitions:

Credit Issued

The provision of funds or goods before payment, based on the trust that payment will be made in the future.

Reasonable Source

A credible or reliable origin of information or data that is considered acceptable or trustworthy for making decisions or drawing conclusions.

Sold Receivables

The process of a company selling its receivables to a third party to improve its cash flow.

Maturity Date

The date on which the final payment on the bond is due from the bond issuer to the investor.