During 2016 Its First Year of Operations Aida's Bakery Had

question 42

Multiple Choice

During 2016 its first year of operations Aida's Bakery had revenues of $65000 and expenses of $35000. The business had owner's drawings of $22000. What is the amount of owner's equity at December 31 2016?

• A) $0
• B) $8000 credit
• C) $30000 credit
• D) $22000 debit

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Definitions:

Equilibrium Quantity

The amount of products or services available and sought after at the equilibrium price, a point where the supply and demand in the market equalize.

Price Ceilings

Government-imposed limits on how high a price can be charged for a product or service.

Market Equilibrium

The condition in which market supply equals market demand, such that prices become stable.

Increased Demand

Describes a situation where a larger number of consumers are willing and able to purchase a good or service at a given price, often leading to higher prices or a market shortage if supply does not increase correspondingly.