Tara Westmont,the Proprietor of Tiptoe Shoes,had Annual Revenues of $185,000,expenses

question 56

Multiple Choice

Tara Westmont,the proprietor of Tiptoe Shoes,had annual revenues of $185,000,expenses of $103,700,and withdrew $18,000 from the business during the current year.The owner's capital account before closing had a balance of $297,000.The ending owner's capital balance after closing is:

• A)$185,000
• B)$63,300
• C)$81,300
• D)$360,300
• E)$378,300

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Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often reinvested in the business or kept as a reserve.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs, but excluding indirect expenses.

Expense

An outflow of cash or other valuable assets from a person or company to another entity in exchange for goods or services.

Expenses

Costs incurred during business operations to generate revenue, which may include rent, salaries, and materials.