At the Beginning of 20B, Rodriguez Corporation Had Assets of $820,000

question 27

Multiple Choice

At the beginning of 20B, Rodriguez Corporation had assets of $820,000 and liabilities of $340,000. During the year, assets increased by $40,000 and liabilities decreased by
$8,000. What was the total amount of shareholders' equity at the end of 20B?

• A) $1,208,000.
• B) $432,000.
• C) $528,000.
• D) $480,000.

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Definitions:

Financial Statement

Formal records that outline the financial activities and condition of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Objectivity Concept

An accounting principle that requires financial and accounting information to be independent and based on measurable and verifiable data.

Unit of Measure

A standard quantity used to express a physical quantity, ensuring uniformity in the reporting of financial and operational data.

Business Entity Concept

An accounting principle that treats a business as separate from its owners or shareholders for financial reporting purposes.