The Following Information Was Extracted from the Accounting Records of Ernest

question 3

Multiple Choice

The following information was extracted from the accounting records of Ernest Company: $$\begin{array} { l r } \text { Beginning Paid-In Capital } & \$ 90,000 \\\text { Beginning Retained Earnings } & \$ 210,000 \\\text { Beginning Assets } & \$ 455,000\end{array}$$ During the period assets increased by $150,000, revenues were $200,000, and expenses were $165,000.The owners made no additional investments. The amount of Ernest Company's liabilities at the beginning of the period is _____.

• A)$545,000
• B)$155,000
• C)$300,000
• D)$245,000

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Definitions:

Anorexia Nervosa

A severe eating disorder characterized by an intense fear of gaining weight and a distorted body image, leading to excessive weight loss and potentially fatal health issues.

Percent

A measure or ratio expressed as a fraction of 100, used to describe the proportion or percentage of one thing relative to another.

Troubled

Experiencing difficulty or distress; often used to describe someone who is going through emotional or behavioral problems.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by compensatory behaviors such as vomiting to avoid weight gain.