Use the Following Information for Questions 144-146

question 215

Multiple Choice

Use the following information for questions 144-146.
Stahl Consulting started the year with total assets of $20,000 and total liabilities of $5,000. During the year, the business recorded $16,000 in catering revenues and $8,000 in expenses. Stahl made an additional investment of $3,000 and withdrew cash of $5,000 during the year.
-The net income reported by Stahl Consulting for the year was

• A) $16,000.
• B) $11,000.
• C) $8,000.
• D) $3,000.

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Definitions:

Debit Entries

Accounting records that increase an asset or expense account, or decrease a liability, equity, or revenue account.

Credit Entries

Accounting entries that increase liability or equity accounts or decrease asset or expense accounts.

Cash Account

An account recording all transactions involving cash inflows and outflows.

Owner's Capital

The amount of money and other assets owned by the owner of a company that has been invested in the business.