Dixon Company has the following items recorded on its financial records:
Available-for-sale securities $200,000
Prepaid expenses 400,000
Treasury stock 100,000
The total amount of the above items to be shown as assets on Dixon’s statement of financial position is

A. $400,000
B. $600,000
C. $500,000
D. $700,000

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars