Sing Tao Inc $\$ 1,030,000$ , and Paid Dividends Of

question 59

Multiple Choice

Sing Tao inc. began operations on June 2, 2011. During June, Sing Tao sold ordinary shares for HK$11,450,000, earned Revenue of HK$2,020,000, incurred expenses of HK $\$ 1,030,000$ , and paid dividends of $\mathrm{HK} \$ 30,000$ . Equity at the end of June is

• A) \( \mathrm{HK} \$ 960,000 \)
• B) \( \mathrm{HK} \$ 990,000 \)
• C) \( \mathrm{HK} \$ 12,410,000 \)
• D) \( H K \$ 13,471,000 \)

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Definitions:

Shutdown Point

The level of production and price at which a firm's total revenue is exactly equal to its total variable costs, leading to a decision whether to temporarily halt production.

Short-Run Supply

The total amount of goods and services that producers are willing and able to sell in the market at various prices over a short period, often influenced by fixed factors of production.

Long-Run Supply

A market condition reflecting the total output of goods and services providers are willing and able to produce, considering all inputs are variable.

Short Run

Refers to a period in which at least one input is fixed, limiting the capacity of the economy or firm to adjust to changes in demand.