Use the Following Information for Questions 138-139

question 153

Multiple Choice

Use the following information for questions 138-139.
Saira's Service Shop started the year with total assets of $100,000 and total liabilities of $80,000. During the year, the business recorded $210,000 in revenues, $110,000 in expenses, and owner drawings of $20,000.
-Owner's equity at the end of the year was

• A) $120,000.
• B) $100,000.
• C) $80,000.
• D) $90,000.

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Definitions:

Periodic Inventory System

A periodic inventory system is a method of inventory valuation in which physical inventory counts are performed at specific intervals to determine the cost of goods sold and ending inventory.

Ending Inventory

The total value of a company's inventory available at the end of an accounting period, instrumental in calculating the cost of goods sold.