Fat Possum's Service Shop Started the Year with Total Assets

question 59

Multiple Choice

Fat Possum's Service Shop started the year with total assets of $330,000 and total liabilities of $2400,000. During the year, the business recorded $630,000 in revenues, $420,000 in expenses, and paid dividends of $60,000. The net income reported by Fat Possum's Service Shop for the year was

• A) $150,000.
• B) $210,000.
• C) $240,000.
• D) $270,000.

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Definitions:

Sub-goals

Sub-goals are smaller tasks or objectives set as steps towards achieving a more significant goal, helping to organize and focus efforts.

Thinking

A cognitive process used to transform or manipulate information that may be either focused (i.e., solving problems with clear goals) or unfocused (i.e., invoking loosely related ideas without a clear purpose).

Information Given

The data or facts provided or available in a specific context or situation.

Generate-and-test

A problem-solving strategy that involves generating potential solutions and testing them to see if they solve the given problem.