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

question 25

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. Stockholders' equity at the end of the year was

• A) $120,000.
• B) $110,000.
• C) $130,000.
• D) $70,000.

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Definitions:

Marginal Utility

The additional satisfaction or usefulness gained from consuming one more unit of a good or service.

Income Effect

is the change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to replace more expensive items with less expensive ones.

Marginal Utility Data

Information regarding the incremental benefit or satisfaction gained from consuming an additional unit of a good or service.