Fat Possum's Service Shop Started the Year with Total Assets

question 116

Multiple Choice

Fat Possum's Service Shop started the year with total assets of $330,000 and total liabilities of $240,000. During the year, the business recorded $630,000 in revenues, $420,000 in expenses, and paid dividends of $60,000. Stockholders' equity at the end of the year was

• A) $90,000.
• B) $240,000.
• C) $300,000.
• D) $360,000.

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Definitions:

Oedipus Complex

A Freudian theory that refers to a child's feelings of desire for their opposite-sex parent and jealousy and envy towards their same-sex parent.

Phallic Stage

A stage in Freudian psychosexual development, occurring in early childhood, where the libido's focus is on the genital area, and the beginnings of sexual identity are formed.

Libido

A phrase in the context of psychoanalytic theory that refers to the libido or sexual longing.

Sexual Energy

The energy associated with sexual desires and activities.