During 2018, Its First Year of Operations, Neko's Bakery Had

question 33

Multiple Choice

During 2018, its first year of operations, Neko's Bakery had revenues of $60,000 and expenses of $35,000. The business paid dividends of $20,000. What is the amount of stockholders' equity at December 31, 2018?

• A) $0
• B) $5,000 credit
• C) $25,000 credit
• D) $20,000 debit

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Definitions:

Iron Core

A component made of iron within an electromagnetic device, such as a transformer or inductor, used to enhance magnetic flux.

Mutual Induction

The phenomenon where a change in magnetic flux in one coil induces a voltage in an adjacent coil, used in transformers and inductive components.

Inductors

Passive electrical components designed to resist changes in current, storing energy in a magnetic field when current flows through them.

Current Flow

The movement of electric charge carriers, such as electrons, through a conductor or semiconductor.