Stahl Consulting Started the Year with Total Assets of $60,000

question 70

Multiple Choice

Stahl Consulting started the year with total assets of $60,000 and total liabilities of $15,000. During the year, the business recorded $48,000 in catering revenues and $30,000 in expenses. Stahl issued stock of $9,000 and paid dividends of $15,000 during the year. The net income reported by Stahl Consulting for the year was:

• A) $3,000.
• B) $12,000.
• C) $18,000.
• D) $27,000.

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Definitions:

Single-Entry System

An accounting method where each financial transaction is recorded only once, either as an expense or income, making it simpler but less comprehensive than double-entry systems.

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity, solvency, and overall financial health.

Debt Collection

The process of pursuing payments of debts owed by individuals or businesses.

Inventory Control

The process of managing the ordering, storage, and use of goods or materials to ensure availability while minimizing excess supply.