Scott's Camera Shop Started the Year with Total Assets of $80

question 101

Multiple Choice

Scott's Camera Shop started the year with total assets of $80 000 and total liabilities of $40 000. During the year, the business earned revenues of $120 000 and incurred expenses of $70 000. Scott made no capital contributions during the year, but did make withdrawals of $60 000. What is the amount of Scott's owners' equity at the end of the year?

• A)$50 000
• B)$30 000
• C)$10 000
• D)$40 000

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Definitions:

Legal Responsibilities

Obligations that are enforced by law, requiring individuals or organizations to follow specific legal standards and regulations.

Self-perpetuating

A process or mechanism that has the ability to sustain itself or continue indefinitely without external input.

Generative

Refers to processes capable of producing or creating new content, structures, patterns, or ideas.

Fiduciary

A person or organization that acts on behalf of another person or persons, putting their clients' interest ahead of their own, with a duty to preserve good faith and trust.