Use the Following Information for Questions $€ 60,000$ And Total Liabilities Of

question 177

Multiple Choice

Use the following information for questions . Stahl Consulting started the year with total assets of $€ 60,000$ and total liabilities of $€ 15,000$ . During the year, the business recorded $€ 48,000$ in catering revenues and $€ 24,000$ in expenses. Stahl issued ordinary shares of $€ 9,000$ and paid dividends of $€ 15,000$ during the year.
-Equity changed by what amount from the beginning of the year to the end of the year?

• A) \(€ 45,000\)
• B) \(€ 42,000\)
• C) \(€ 18,000\)
• D) \(€ 9,000\)

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Definitions:

IRS

The Internal Revenue Service, the United States government agency responsible for tax collection and tax law enforcement.

Signaling Effects

The idea that actions taken by a company, such as dividend payments or changes, can provide information to the market about its future prospects.

Stock Repurchase

A program by which a company buys back its own shares from the marketplace, usually to increase the value of remaining shares.

Excess Cash

Excess cash refers to the amount of cash holdings that exceed what a company needs for its operational requirements, often invested or returned to shareholders.