Yowell Company Began Operations on January 1, Year 1

question 185

Multiple Choice

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $48,0002) borrowed $29,000 from its bank3) provided consulting services for $47,000 cash4) paid back $19,000 of the bank loan5) paid rent expense for $11,0006) purchased equipment for $16,000 cash7) paid $3,400 dividends to stockholders8) paid employees' salaries of $25,000
What is Yowell's notes payable balance at the end of Year 1?

• A) $29,000
• B) $0
• C) $19,000
• D) $10,000

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Definitions:

Type I Error

The mistake of rejecting a true null hypothesis, also known as a "false positive".

Type II Error

A statistical error that occurs when the null hypothesis is not rejected when it is false, also known as a "false negative" finding.

Level Of Significance

The threshold probability used in hypothesis testing to determine if the null hypothesis can be rejected, typically denoted by alpha (α).

Power Of The Test

The likelihood that a test will correctly reject a false null hypothesis, indicating the test's sensitivity.