Use the information given below to answer the following questions:
LPR is a company that commenced business on 1 January 2012. Below are the balances in the 30 June 2012 financial statements.
$$\begin{array} { l r }
&\$\
\text { Cash } & 2000 \
\text { Share capital } & 12000 \
\text { Accounts receivable } & 6000 \
\text { Accounts payable } & 4000 \
\text { Loan payable } & 14000 \
\text { Land } & 20000 \
\text { Inventory } & 4000 \
\text { Cost of goods sold } & 3000 \
\text { Wages expense } & 5000 \
\text { Sales } & 10000
\end{array}$$

-What is the balance of liabilities?
A) $18 000
B) $30 000
C) $20 000
D) $21 000.

Question

Use the information given below to answer the following questions:
LPR is a company that commenced business on 1 January 2012. Below are the balances in the 30 June 2012 financial statements.
$$\begin{array} { l r } 
&\$\
\text { Cash } & 2000 \
\text { Share capital } & 12000 \
\text { Accounts receivable } & 6000 \
\text { Accounts payable } & 4000 \
\text { Loan payable } & 14000 \
\text { Land } & 20000 \
\text { Inventory } & 4000 \
\text { Cost of goods sold } & 3000 \
\text { Wages expense } & 5000 \
\text { Sales } & 10000
\end{array}$$

-What is the balance of liabilities?
A) $18 000
B) $30 000
C) $20 000
D) $21 000.

Quizplus · Accepted Answer

The balance of liabilities is the sum of accounts payable ($4,000) and loan payable ($14,000), which equals $18,000.

Use the Information Given Below to Answer the Following Questions