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Good Job Ltd. had the following list of balance sheet items: equity $240,000, non-current assets $500,000, accounts receivable $230,000, bank overdraft $300,000. Accounts payable, the only item missing from the list, must be: Group of answer choices 1.$670,000 2.$190,000 3.$210,000 4.$790,000

Question

Good Job Ltd. had the following list of balance sheet items: equity 240,000,noncurrentassets240,000, non-current assets 500,000, accounts receivable 230,000,bankoverdraft230,000, bank overdraft 300,000. Accounts payable, the only item missing from the list, must be: Group of answer choices

1.$670,000

2.$190,000

3.$210,000

4.$790,000

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Solution

To find the missing item, accounts payable, we need to calculate the total assets and total liabilities of Good Job Ltd.

Given: Equity = 240,000Noncurrentassets=240,000 Non-current assets = 500,000 Accounts receivable = 230,000Bankoverdraft=230,000 Bank overdraft = 300,000

Step 1: Calculate the total assets. Total assets = Non-current assets + Accounts receivable + Bank overdraft Total assets = 500,000+500,000 + 230,000 + 300,000Totalassets=300,000 Total assets = 1,030,000

Step 2: Calculate the total liabilities. Total liabilities = Total assets - Equity Total liabilities = 1,030,0001,030,000 - 240,000 Total liabilities = $790,000

Therefore, the missing item, accounts payable, must be $790,000.

The correct answer is: 4. $790,000

This problem has been solved

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