York Casting Services Started the Year with Total Assets of $120,000

question 72

Multiple Choice

York Casting Services started the year with total assets of $120,000 and total liabilities of $60,000.The revenues and the expenses for the year amounted to $150,000 and $50,000,respectively.During the year,the owner did not make any additional contributions,but had withdrawals of $75,000.Calculate the amount of increase or decrease in owner's equity for the year.

• A)a $25,000 increase
• B)a $85,000 increase
• C)a $60,000 decrease
• D)a $75,000 increase

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Definitions:

Capital Resources

Assets such as machinery, buildings, and technology that are used in the production of goods and services.

High Price

A term referring to a price level that is significantly above average or expected, often indicating scarcity, high demand, or premium quality.

Wages

Payments made to workers or employees as compensation for their labor, typically calculated on an hourly, daily, or piecework basis.

Bonuses

Extra payments given to employees above their normal compensation as a reward for performance or achievement.