Stahl Consulting Started the Year with Total Assets of $60,000

question 70

Multiple Choice

Stahl Consulting started the year with total assets of $60,000 and total liabilities of $15,000. During the year, the business recorded $48,000 in catering revenues and $30,000 in expenses. Stahl issued stock of $9,000 and paid dividends of $15,000 during the year. The net income reported by Stahl Consulting for the year was:

• A) $3,000.
• B) $12,000.
• C) $18,000.
• D) $27,000.

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Definitions:

Expected Utility

A concept in economics that represents the sum of utilities associated with all possible outcomes, weighted by the probability of each outcome.

Utility

A measure of the satisfaction or happiness that consumers get from consuming goods or services.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Expected Income

The income an individual or firm anticipates receiving over a certain period, often based on current or historical earnings.