1. A business has the following items in it: - Land 2 000 000 - Machinery 40 000 - Cash 20 000 - Owner's equity 1 000 000 - Debt? What is the value of debt and how is it calculated A) 1 060 000 b) 3 060 000 C) 840 000 D) 1 010 000 (please show how you got the answer)
1. A business has the following items in it:
- Land 2 000 000
- Machinery 40 000
- Cash 20 000
- Owner's equity 1 000 000
- Debt?
What is the value of debt and how is it calculated
A) 1 060 000
b) 3 060 000
C) 840 000
D) 1 010 000
(please show how you got the answer)
2. A business has the following items in it:
- Land 500 000
- Machinery 40 000
- Cash 60 000
- Loan?
- Owner's equity 250 000
What is the value of the loan?
A) 350 000
B) 850 000
C) 1 000 000
D) 1 030 000
3. A business has the following items in it:
- Owner's equity: 1 200 000
- Total liabilities 2 800 000
Assets?
What is the value of assets in this business?
a) 300 000
b) 400 000
c) 1 600 000
d) 4 000 000
e) none of the above
4. A business has the following in it:
- Land 750 000
- Machinery 40 000
- Cash 10 000
- Owner's equity 450 000
- Loan 250 000
- Creditors?
What is the value of the creditors?
A) 100 000
B) 7 00 000
C) 900 000
D) 1500 000
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