According to the accountant for Michael's Floral Supply, the firm's assets are 124,000 and its liabilities are 31,000. Which of the following statements is true?
A) The owners' equity is 155,000.
B) The owners' equity is 93,000.
C) The firm's current assets are 62,000.
D) The firm's current liabilities are 24,000.
E) The firm's accounting equation won't balance.
Question 2
Generally speaking, a narrow span of management implies that the height of the organization will be _____; a wide span of management implies that the height of the organization will be _____.
A) flat; tall
B) tall; sloped
C) tall; flat
D) short; tall
E) long; short
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