Finney Company Began the Year with Retained Earnings of $100,000

question 54

Multiple Choice

Finney Company began the year with retained earnings of $100,000.During 2022, the company issued $80,000 of common stock for cash.The company recorded revenues of $740,000, expenses of $640,000, and paid dividends of $40,000.What was Finney's net income for the year 2022?

• A)$60,000
• B)$140,000
• C)$100,000
• D)$180,000

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Definitions:

Monopoly Profit-maximizing

The process by which a monopoly sets its output and price levels to achieve the highest possible profit, given its unique position as the sole seller of a product or service.

Government Failure

Situations where government intervention in the economy creates inefficiency, leading to a misallocation of resources or failure to achieve intended outcomes.

Rent Seeker

An individual or entity that seeks to increase their own wealth without creating new wealth, often by exploiting control over resources or manipulating regulations.

Rent-seeking Behavior

Activities aimed at increasing one’s share of existing wealth without creating new wealth, often through manipulation or exploitation of the economic environment.