The Resources Owned by David's Spa and Salon Total $148,000

question 169

Multiple Choice

The resources owned by David's Spa and Salon total $148,000. The total amount of debt that it owes to others is $87,000. Which of the following is correct?

• A)David's owners' equity is $87,000.
• B)The owners' equity in David's is $61,000.
• C)David's liabilities are $148,000.
• D)The firm's liabilities are $61,000.
• E)The firm has more owners' equity than liabilities.

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Definitions:

General Practitioners

Medical doctors who provide primary and continuing care in the community, treating patients with a wide range of health issues.

Sanity

A legal term referring to an individual's ability to understand right from wrong and the nature of their actions at the time of a crime.

Involuntary Hospitalization

The process of admitting an individual to a psychiatric facility without their consent, typically when they are considered a danger to themselves or others.

Risk Of Harm

The likelihood or possibility that an individual will experience injury, damage, or another negative outcome.