Answer:
4. Amounts owed to suppliers
Explanation:
We know that
Balance sheet comprises of assets, liabilities and the stockholder equity
The assets could be classified into current asset, fixed asset, and the intangible assets
While the liabilities are also classified into current liabilities and the long term liabilities
The account receivable, equipment, supplies have come on the asset side of the balance sheet whereas the account payable or amount owed to suppliers have come on the liabilities side of the balance sheet
So, the most appropriate option is 4.
Given:
net sales = 53,404,000,000
Average total assets = 16,302,000,000
Total asset turnover is calculated by divided net sales by the average total assets.
Total asset turnover = net sales / average total assets
T.A.O = 53,404,000,000 / 16,302,000,000
T.A.O = 3.2759 OR 3.3
The total asset turnover indicates the company's ability to efficiently deploy its asset in generating revenue.
Answer: c. shields the personal assets of owners from liability claims.
Explanation:
An advantage of limited liability is that it shields the personal assets of owners from liability claims.
For a limited liability company, it should be noted that the liabilities of the members in the company for the debts that are incurred are limited only to the investment of the members. Personal assets are not affected if the company first into debt.
