Ashley's Accessory Shop Started the Year with Total Assets of $210,000

question 54

Multiple Choice

Ashley's Accessory Shop started the year with total assets of $210,000 and total liabilities of $120,000. During the year the business recorded $330,000 in revenues, $165,000 in expenses, and dividends of $60,000. The net income reported by Ashley's Accessory Shop for the year was

• A)$120,000.
• B)$150,000.
• C)$195,000.
• D)$165,000.

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Definitions:

Total Revenue

The complete amount of income generated by a company from its business activities, before any expenses are subtracted.

Salary Increase

An adjustment to an employee's base compensation amount to a higher rate, often recognizing performance, inflation adjustments, or changes in job role.

Monthly Salary

Fixed regular payment received by an employee from an employer on a monthly basis for their professional services.

Promotion

The act of raising someone to a higher position or rank or the process of encouraging the sale of a product through advertising or discount offers.