A New Corporation Ended Its First Year of Operations with Assets

question 51

Multiple Choice

A new corporation ended its first year of operations with assets of $100,000,liabilities of $75,000,and contributed capital (common shares) of $10,000.What was the corporation's profit for the year?

• A)$25,000
• B)$65,000
• C)$90,000
• D)$75,000
• E)$15,000

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Definitions:

Financial Services Market

A market that comprises establishments engaged in transactions and activities related to financial services like banking, investment, and insurance.

Apple Card

A credit card created by Apple Inc. designed to be used with Apple Pay, offering cashback rewards and various features integrated with iOS.

Credit Card Use

The application of credit cards as a payment method where the cardholder borrows funds to pay for goods and services with the promise to repay the borrowed amount along with any agreed-upon fees or interest.

Market Development

A growth strategy where a company seeks to increase sales by promoting its existing products in new markets or to new segments.