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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