Given Below Are Several Accounts from Caterpillar Company's Accounting Records

question 31

Multiple Choice

Given below are several accounts from Caterpillar Company's accounting records.
$\begin{array}{lr}\text { Cash } & \$ 15,000 \\\text { Accumulated depreciation } & 7,000 \\\text { Retained earnings, beginning of year } & 22,000 \\\text { Contributed capital } & 25,000 \\\text { Patents } & 2,000 \\\text { Dividends } & 5,000\end{array}$
Net income for the year was $40,000. How much is total shareholders' equity at the end of the year?

• A)$86,000.
• B)$88,000.
• C)$87,000.
• D)$82,000.

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Definitions:

Stock Performance

The measure of how the stock of a particular company has done over a certain period of time, often evaluated through price changes and dividend payments.

Managerial Accounting Reports

Internal financial reports tailored to the needs of an organization's management, containing operational and financial data to aid in decision-making.

Usefulness

The degree to which something fulfills a need, serves a purpose, or provides benefits to users.

GAAP

Stands for Generally Accepted Accounting Principles, which are a set of rules and standards used for financial reporting and accounting.