Emmitt Had the Following Final Balances After the First Year

question 66

Multiple Choice

Emmitt had the following final balances after the first year of operations: assets,$55,000;stockholders' equity,$25,000;dividends,$3,000;and net income,$10,000.What is the amount of Emmitt's liabilities?

• A)$55,000.
• B)$30,000.
• C)$13,000.
• D)$7,000.

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Definitions:

Equity Instruments

Financial instruments that signify an ownership interest in an entity, such as stocks or share options.

Reload Features

Options or clauses in certain agreements that allow for the automatic renewal or extension under specific conditions.

Initial Options

The first set of choices or decisions available in a particular situation or as part of a negotiated agreement.

Fair Value

The gain from liquidating an asset or the outgo for transferring a liability in a well-planned trade with market stakeholders on the designated measurement day.