Question

A company reported the following in its recent balance sheet:

Answer 1

Answer: a. $240,116

Explanation:

The following are considered assets in the above question.

Accounts Receivable $81,336

Cash $73,324

Inventories $25,816

Properties and Equipment $54,128

Supplies $5,512

So adding them up we have,

= 81,336 + 73,324 + 25,816 + 54,128 + 5,512

= $240,116

$240,116 is the amount of Total Assets on the Balance Sheet so option A is correct.

NB - Supplies are considered Assets when they are significant.

Answer 2

Answer:

a. $240,116

Explanation:

The balance sheet has two sides, assets and Liabilities side and both sides must always equal each other.The assets include items such as cash supplies inventories , and other resources which have expected future benefits.

Liability accounts are claims against assets which means they are obligations to transfer assets or provide product or services to other entities. Equity is the owner's residual interest in the assets after deducting liabilities.

The Balance Sheet

Cash $73,324

Supplies $5,512

Inventories $25,816

Accounts Receivable $81,336

Properties and Equipment $54,128

Total Assets $ 240116

Accounts Payable $19,207

Wages Payable $12,880

Income Tax Payable $3,512

Long-term Liabilities $1,709

Stockholder's Equity $202,808

Total Liabilities and Owner's Equity $ 240116

So we see that both sides are equal so choice a is the best option.