Consider Mandy's Decision to Go to College

question 63

Multiple Choice

Consider Mandy's decision to go to college.If she goes to college,she will spend $20,000 on tuition,$10,000 on room and board,and $2,000 on books.If she does not go to college,she will earn $18,000 working in a store and spend $8,000 on room and board.Mandy's cost of going to college is

• A)$32,000.
• B)$42,000.
• C)$50,000.
• D)$58,000.

---

Definitions:

Known Current Liabilities

Short-term financial obligations that are recognized and recorded, expected to be settled within one year or within the normal operating cycle.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Contingent Liabilities

Contingent liabilities are potential liabilities that may occur depending on the outcome of a future event.

Account

A record in bookkeeping that tracks financial transactions of a specific type, such as assets, liabilities, expenses, or revenue.