Jimmy's Repair Shop Started the Year with Total Assets of $200,000

question 127

Multiple Choice

Jimmy's Repair Shop started the year with total assets of $200,000 and total liabilities of $160,000. During the year the business recorded $420,000 in revenues, $220,000 in expenses, and dividends of $40,000. Stockholders' equity at the end of the year was

• A) $240,000.
• B) $200,000.
• C) $160,000.
• D) $180,000.

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Definitions:

McDonald's Franchise

A business agreement allowing an individual or entity to operate a McDonald's restaurant, adhering to the corporation's branding, operations, and product standards.

Demand for Hamburgers

The quantity of hamburgers consumers are willing and able to purchase at various prices.

Sherman Antitrust Act

The Sherman Antitrust Act is a landmark U.S. legislation passed in 1890, aimed at maintaining fair competition in the marketplace by prohibiting monopolies and other activities that restrained trade.

Duopolists

Duopolists are two firms that dominate a particular market or industry, influencing prices and market outcomes.