DECA Hospitality Services Team Decision Making Practice Exam

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Prepare for the DECA Hospitality Services Team Decision Making Exam. Study with flashcards and multiple choice questions, each question comes with hints and explanations. Ace your exam with confidence!

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If a business has cash of $2,500, accounts receivable of $6,125, inventory of $3,775, machinery and equipment worth $10,350, and accounts payable of $4,280, what is the total value of its assets?

$22,750
$17,200
$15,470
$18,050

The correct answer is: $22,750

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.