DECA Hospitality Services Team Decision Making Practice Exam

To determine the total value of a business's assets, you sum all the asset categories listed. In this scenario, the assets include cash, accounts receivable, inventory, and machinery and equipment.

- Cash is $2,500

- Accounts receivable is $6,125

- Inventory is $3,775

- Machinery and equipment is $10,350

When you add these values together:

$2,500 (cash) + $6,125 (accounts receivable) + $3,775 (inventory) + $10,350 (machinery and equipment) = $22,750

The total of $22,750 reflects the complete value of the business's assets, showing the combined worth of liquid assets, inventories, and property/equipment. This calculation is essential for understanding the total financial standing of the business and important for decision-making processes regarding investments, loans, and overall financial management.

Therefore, the total value of assets is accurately reflected as $22,750.