During the Year 2009, Diego Company Earned Revenues of $45,000

question 158

Multiple Choice

During the year 2009, Diego Company earned revenues of $45,000, had expenses of $25,000, purchased assets with a cost of $5,000 and had owner drawings of $3,000. Net income for the year is

• A) $45,000.
• B) $20,000.
• C) $17,000.
• D) $15,000.

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Definitions:

Economic Signals

Indicators or pieces of data that inform individuals or markets about the health of the economy or trends in economic activity, potentially guiding decision-making.

Efficiency

The extent to which time, effort, or cost is well used for the intended task or purpose.

Equity

Fairness or justice in the way people are treated, or in financial terms, the value of an ownership interest in property, including shareholders' equity in a business.

Efficiency

The optimal allocation of resources to maximize the production of goods and services.