Suppose that David's only assets are an automobile worth $10,000 and a checking account with a $5,000 balance. His only liabilities are a student loan balance of $12,000 and a balance of $9,000 on his car loan. What is his net worth?
A) $21,000
B) $15,000
C) $6,000
D) Doug is currently insolvent with $6,000 negative net worth.
E) None of the above statements are correct.
Answer: D
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Calculate the percent increases for each of the following selected balance sheet items.?Year 2Year 1Cash$ 569$ 448Accounts receivable2,2342,337Merchandise inventory1,0621,071Plant assets2,4322,138Bonds payable1,1641,666Equity2,7772,894
What will be an ideal response?
Asuncion Company purchased some equipment on January 2, 2011, for $24,000 . The company used straight-line depreciation based on a ten-year estimated life with no residual value. During 2014, management decided that this equipment could be used only three more years and then would be replaced with a technologically superior model. What entry should the company make as of January 1 . 2014, to
reflect this change? a. No entry b. Debit a Prior Period Adjustment account for $4,800 and credit accumulated depreciation for $4,800. c. Debit Retained Earnings for $4,800 and credit accumulated depreciation for $4,800. d. Debit Depreciation Expense for $4,800 and credit Accumulated Depreciation for $4,800.
Maria, the production manager at a pharmaceutical company, is preparing a production report for the accounting period. The report would show all of the following except:
a. Estimated stage of completion for ending work in process. b. Time required to complete each unit of production. c. Number of units in the ending work in process. d. Number of units completed.
Define a budget. Briefly explain the two classifications of expenditures.
What will be an ideal response?