At the end of the year, Cramer University held assets of $15,000,000 and recorded $9,000,000 of liabilities (including deferred revenues of $300,000). What is Cramer's net assets balance?
Choice "D" is correct. The net assets balance of the university equals its assets minus its liabilities (including deferred revenues). $15,000,000 - $9,000,000$6,000,000. Deferred revenues are not a component of net assets and would be included in the liability total of $9,000,000.
