Below Is Accounting Information for Cascade Company for 2013, Its

question 124

Multiple Choice

Below is accounting information for Cascade Company for 2013, its first year of business
$\begin{array}{|l|r|}\hline \text { Revenue } & \$ 416,000 \\\hline \text { Cash } & \$ 120,000 \\\hline \text { Common stock } & \$ 200,000 \\\hline \text { Expenses } & \$ 300,000 \\\hline \text { Equipment } & \$ 240,000 \\\hline \text { Accounts receivable } & \$ 35,000 \\\hline \text { Notes payable } & \$ 50,000 \\\hline \text { Notes receivable } & \$ 62,000 \\\hline\end{array}$ What was total equity at year end?

• A) $320,000
• B) $296,000
• C) $316,000
• D) $457,000
• E) $116,000

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Definitions:

Statute of Limitations

A law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.

Collection Suit

A legal action taken by creditors to collect unpaid debts from a debtor through the court system.

Minor

Anyone under the age of majority—18 in most states, 21 in some jurisdictions.

Emancipated Minor

A legal status granted to individuals under 18, allowing them rights and responsibilities of legal adulthood under specific conditions.