Ashley's Accessory Shop Started the Year with Total Assets of $140,000

question 51

Multiple Choice

Ashley's Accessory Shop started the year with total assets of $140,000 and total liabilities of $80,000. During the year the business recorded $220,000 in revenues, $110,000 in expenses, and dividends of $40,000. The net income reported by Ashley's Accessory Shop for the year was

• A) $80,000.
• B) $100,000.
• C) $130,000.
• D) $110,000.

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Definitions:

Production Estimates

These are predictions or forecasts about the volume of production expected to be achieved in a specified future period.

Ideal Standards

Standards set under perfect or ideal conditions, used for comparison with actual performance to gauge efficiency and productivity, though often unattainable in practice.

Optimum Performance

The highest level of efficiency, productivity, or effectiveness that can be achieved in a specific context.

Attainable Standards

Realistic standards that can be achieved under current operating conditions, often used in cost and management accounting.