Foxes Service Shop Started the Year with Total Assets of $320000

question 147

Multiple Choice

Foxes Service Shop started the year with total assets of $320000 and total liabilities of $240000. During the year the business recorded $630000 in revenues $450000 in expenses and owner drawings of $60000. Owner's equity at the end of the year was

• A) $80000.
• B) $200000.
• C) $310000.
• D) $370000.

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Definitions:

Optimal R&D

The most efficient level of investment in research and development activities that maximizes innovation and return on investment.

Interest-Rate Cost-Of-Funds

The cost associated with borrowing funds, determined by the interest rate being charged on the borrowed money.

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied of a good changes infinitely in response to any change in price.