Yowell Company Began Operations on January 1, Year 1

question 41

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 $40,000 2) borrowed $25,000 from its bank
3) provided consulting services for $39,000 cash
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment for $12,000 cash
7) paid $3,000 dividends to stockholders
8) paid employees' salaries of $21,000
What is Yowell's net income for Year 1?

• A) $9,000
• B) $30,000
• C) $18,000
• D) $6,000

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Definitions:

.05 Level Of Significance

A statistical threshold indicating that the probability of the observed results occurring by chance is 5% or less, suggesting that the results are statistically significant.

"Significant" Findings

In research, findings that are statistically significant indicate that the results observed are unlikely to be due to chance, suggesting a meaningful effect or relationship.

Flukes

Unpredictable events of chance or luck, especially those leading to a favorable outcome.

Dependent Variable

In an experiment, it is the variable being tested and measured, and it is expected to change as a result of manipulations to the independent variable(s).