Benedict Company Compiled the Following Financial Information as of December

question 11

Multiple Choice

Benedict Company compiled the following financial information as of December 31, 2014: $$\begin{array} { l r } \text { Service revenue } & \$ 560,000 \\\text { Common stock } & 120,000 \\\text { Equipment } & 160,000 \\\text { Operating expenses } & 500,000 \\\text { Cash } & 140,000 \\\text { Dividends } & 40,000 \\\text { Supplies } & 20,000 \\\text { Accounts payable } & 80,000 \\\text { Accounts receivable } & 60,000 \\\text { Retained earnings, } 1 / 1 / 14300,000\end{array}$$ Benedict's assets on December 31, 2014 are

• A) $940,000.
• B) $680,000.
• C) $320,000.
• D) $380,000.

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Definitions:

Owners

Individuals or entities who possess ownership interest in a company or property.

Banking Transaction

An operation that involves the movement of money in or out of a bank account.

Make Deposit

The action of placing money into a bank account or financial institution.

Double-Entry Accounting

An accounting system that records each transaction with equal and opposite effects in at least two different accounts, ensuring accuracy.