Use the Following Information for Questions

question 69

Multiple Choice

Use the following information for questions.
Plumbers-on-the-Go Ltd. started the year with total assets of $120,000 and total liabilities of $75,000. During the year, the business recorded $82,000 in service revenues, $45,000 in expenses, and paid dividends of $2,500.
-The net income reported for the year was

• A) $34,500.
• B) $37,000.
• C) $45,000.
• D) $82,000.

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Definitions:

Form 1099

A tax form in the United States used to report various types of income other than wages, salaries, and tips.

Tax Form

An official document used for reporting financial information to a governmental body, particularly for tax purposes.

Payments Made

The total amount of money disbursed by a company to settle its obligations, such as bills, invoices, or salaries.

Vendors List

A compiled list or database of suppliers and service providers that a company purchases from or contracts with.