Choose the TRUE Statement

question 4

Multiple Choice

Choose the TRUE statement.

• A)A company with Net Income will also have a cash increase from operating activities.
• B)A company with Liabilities of $80,000 and Stockholders' equity of $50,000 will have Assets of $30,000.
• C)If a company has total revenues of $80,000,total expenses of $50,000 and dividends of $10,000,they will have net income of $20,000.
• D)A company with total stockholders' equity of $120,000 and contributed capital of $75,000 must have total retained earnings of $45,000.

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Definitions:

Demand

The desire to purchase goods and services backed by the ability and willingness to pay a certain price.

Supply

The total amount of a specific good or service that is available to consumers at a given time.

Usury Law

Legislation that imposes a maximum interest rate creditors can charge borrowers to protect consumers from excessively high rates.

Quantity

The amount or number of a material or immaterial thing not usually estimated by spatial measurement.