At the Beginning of Year 2, X Company Had Assets

question 143

Multiple Choice

At the beginning of Year 2, X Company had assets of $300, liabilities of $150, and common stock of $50. During Year 2, the company earned revenue of $500, incurred expenses of $200, and paid dividends of $50. All transactions were cash transactionsThe amount of net income reported on X Company's December 31, Year 2 income statement would be

• A) $500
• B) $300
• C) $250
• D) None of these answers are correct.

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Definitions:

Unrelated Diversification

A growth strategy where a business expands into areas that are different from its core operations.

Business Areas

are distinct segments within a company, focusing on specific tasks or markets, such as finance, marketing, or product development.

Tetrapods

Tetrapods are a vertebrate group that includes all species with four limbs or limb-like appendages, including amphibians, reptiles, birds, and mammals.

Ancestors

Individuals from whom one is descended, especially those more remote than grandparents, often referring to earlier generations.