A business has capital of $10,000. Which of the following asset and liability figures could appear in this business’s statement of financial position?

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Q. A business has capital of $10,000. Which of the following asset and liability figures could appear in this business’s statement of financial position?
(A) Assets=$6000, Liabilities=$16000
(B) Assets=$6000, Liabilities=$4000
(C) Assets=$10000, Liabilities=$10000
(D) Assets=$14000, Liabilities=$4000

The answer is: (D) Assets=$14000, Liabilities=$4000
Remember: Capital = Assets – liabilities
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