The Balance Sheet of the Algonquin Company Reported Assets of $50,000

question 36

Multiple Choice

The balance sheet of the Algonquin Company reported assets of $50,000, liabilities of $22,000 and common stock of $15,000. Based on this information only, what is the amount of retained earnings?

• A) $7,000.
• B) $57,000.
• C) $13,000.
• D) $87,000.

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Definitions:

Net Farm Income

The total income from agricultural activities after operating expenses and depreciation are subtracted.

Inferior Good

A type of good whose demand decreases as the income of consumers increases, inverse to normal goods.

Consumer Incomes

The total earnings received by consumers, including wages, salaries, benefits, and other income sources, which affect their purchasing power.

Farm Income

The earnings from agricultural operations, including the sale of crops, livestock, and other farm-related sources.