Use the Following Information for Questions

question 110

Multiple Choice

Use the following information for questions.
Financial statements for Kiner Company are given below:

Total assets on the statement of financial position at December 31, 2011 are $2,216,000.Accumulated deprecia-tion on the equipment sold was $112,000.
-Share capital stock (plus any share premium) at December 31, 2011 was

• A)$800,000.
• B)$920,000.
• C)$520,000.
• D)$1,240,000.

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Definitions:

Unlimited Liability

A legal structure in which the business owner's personal assets can be used to satisfy the business debts and liabilities.

Mutual Agency

A principle of partnership where each partner has the authority to bind the partnership in contractual agreements.

Ease of Formation

Refers to the simplicity and straightforwardness involved in establishing a new business or organization.

Revenue per Employee

Is a financial metric used to measure the average revenue generated by a company per employee, indicating the efficiency and productivity of its workforce.