Blair Scott Started a Sole Proprietorship by Depositing $40,000 Cash

question 54

Multiple Choice

Blair Scott started a sole proprietorship by depositing $40,000 cash in a business checking account. During the accounting period the business borrowed $20,000 from a bank, earned $5,800 of net income, and Scott withdrew $7,000 cash from the business. Based on this information, at the end of the accounting period Scott's capital account contained a balance of:

• A) $45,800.
• B) $41,200.
• C) $58,800.
• D) $38,800.

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Definitions:

Unpleasant Side Effects

Negative outcomes or consequences that may occur as a result of a particular action or policy.

Pollution

Pollution is the introduction of harmful substances or products into the environment, negatively impacting the planet's ecosystems and human health.

Market System

An economic system where decisions about production, investment, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Command-and-control

A type of regulation where the government sets specific limits for pollution emissions and may also mandate specific pollution control technologies.