If an Entity Has Assets of $168 900 and Liabilities

question 34

Multiple Choice

If an entity has assets of $168 900 and liabilities of $70 000 its equity is:

• A) $238 900.
• B) $28 900.
• C) $98 900.
• D) unable to be calculated.

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Definitions:

Liquidated Assets

are assets that have been converted into cash or cash equivalents by selling them on the open market.

Wrongful Dissolution

The improper termination of a partnership or corporate entity in violation of agreements or legal provisions.

Partnership Agreement

A formal contract between two or more parties to manage and operate a business and share its profits or losses.

Wrongful Dissolution

The improper termination of a legal entity or partnership, which can give rise to legal action for damages.