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

question 38

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. The net change in Scott's owners' equity for the year is a:

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

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Definitions:

Denoted

Denoted refers to the act of symbolically representing something - for example, variables in mathematical equations or formulas are often denoted by letters or symbols.

Null Hypothesis

A statement or hypothesis set for statistical testing, suggesting no significant effect or relationship between variables.

Population Parameter

A characteristic or measure that describes an aspect of an entire population, such as its mean or variance.

Value

The importance, worth, or usefulness of something or a numerical quantity assigned to a variable.