Answer:
B. $23,000
Explanation:
Recall that, assets are resources that an individual or an organization has which have future economic value that can be measured,
Thus,
Total current assets = Cash + account receivable + supplies + prepaid rents + inventories.
Therefore
Total current assets = 7000 + 6000 + 1000 + 4000 + 5000
= $23,000
Note: Land is not included in CURRENT asset. Land are longterm assets.
There were a few factors that occurred in the 1950's to affect the economy such as automated loader and undercutting machines in the coal mines. The people of Appalachia depended on the coal mines for their incomes. Coal prices declined in the 1950's and this led to numerous lay-offs and people being unemployed with little jobs in the community.
The correct answer is choice B.
Choice B, a company recognizes expenses when they incur them, is the only choice which is in accordance with US Generally Accepted Accounting Principals. All of the other options are against GAAP.
