Sebastian Decides to Open a Tree Farm

question 67

Multiple Choice

Sebastian decides to open a tree farm. When deciding to open his own business, he turned down two separate job offers of $25,000 and $30,000 and withdrew $20,000 from his savings. Sebastian's savings account paid 3 percent interest. He also borrowed $20,000 from his brother, whom he pays 2 percent interest per year. He spent $15,000 to purchase supplies and earned $50,000 in revenue during his first year. Which of the following statements is correct? ​

• A)​Sebastian's total explicit costs are $15,400.
• B)​Sebastian's total implicit costs are $55,600.
• C)​Sebastian's accounting profit is $35,000.
• D)​Sebastian's economic profit is $4,600.

Knowledge on how QuickBooks categorizes transactions on financial reports.

Ability to record customer payments and understand its impact on business accounts.

Understand the setup process for creating a new company data file in QuickBooks.

Know how to record sales transactions efficiently in QuickBooks.

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Definitions:

Informed Citizen

An individual who is knowledgeable about community, national, and global affairs, enabling them to participate effectively in civic matters.

Society

A group of individuals who live in a structured and interdependent community with shared laws and institutions.

Economics

The field of social science focusing on the decision-making processes used by individuals, governments, businesses, and countries in distributing limited resources to fulfill their endless desires.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, leading to significant changes in technology, economy, and society.