Rochester Corporation holds cash of $10,000 and owes $29,000 on accounts payable. Rochester has accounts receivable of $32,000, inventory of $24,000, and land that cost $51,000. How much are Rochester's total assets and liabilities? G
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Total assets and total liabilities are key financial concepts that are used to measure the financial health of an individual or organization.
Total assets refer to the entire value of an individual or organization's possessions, including both tangible and intangible assets. These may include cash, investments, property, equipment, inventory, accounts receivable, and any other assets that have a monetary value. Total assets are often listed on a balance sheet and are used to determine an organization's net worth or the value of an individual's estate.
Total liabilities, on the other hand, refer to the total amount of debt that an individual or organization owes to others. This may include things like loans, accounts payable, taxes owed, and any other financial obligations. Total liabilities are also listed on a balance sheet and are used to determine an organization's overall debt load and financial obligations.
The difference between total assets and total liabilities is known as net worth, which represents the amount of equity an individual or organization holds. A high net worth generally indicates financial stability and security, while a negative net worth may suggest financial problems or insolvency.
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