The Assets of Frank's Business Increased by $40 000 and the Liabilities

question 11

Multiple Choice

The assets of Frank's business increased by $40 000 and the liabilities increased by $10 000 during the current year. If the profit for this period was $25 000, what additional contribution or withdrawal was made by the owner? (Assume only a withdrawal or a contribution was made.)

• A) Drawings $10 000
• B) Contribution $10 000
• C) Contribution $5000
• D) Drawings $5000

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Definitions:

Red-Circled Rates

Pay rates that are above the maximum of the pay scale for a position, often protected for a period even if they exceed normal salary ranges.

Merit Raises

Salary increases awarded to employees based on their performance and achievements, as opposed to cost of living adjustments or across-the-board increases.

Performance Appraisal

The process by which organizations evaluate employee job performance over a period of time.

Critical Behaviours

Actions or patterns of actions that significantly impact the effectiveness or performance in specific contexts or roles.