The Following Information Was Extracted from the Accounting Records of Poe's

question 62

Multiple Choice

The following information was extracted from the accounting records of Poe's Company: $\begin{array}{ll}\text { Beginning Paid-In Capital } & \$ 87,000 \\\text { Beginning Retained Earnings } & \$ 21,000 \\\text { Beginning As sets } & \$ 455,000\end{array}$ During the period assets increased by $150,000, revenues were $200,000, and expenses were $165,000. No additional investments were made by the owners. The amount of Poe Company's liabilities at the end of the period is:

• A) $150,000
• B) $272,000
• C) $157,000
• D) $45,000

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Definitions:

Horizontal Line

A straight line that has a zero slope and runs parallel to the horizontal axis in a graph.

Vertical Line

A straight line that goes up and down on a graph, representing a scenario where one variable changes while the other remains constant.

Downward Sloping

Describes a line on a graph that shows a decrease in one variable as another variable increases, often used to illustrate laws of demand in economics.

Negatively Related

A term used to describe two variables that move in opposite directions; as one increases, the other decreases.