Moose Momentos Had Equity Accounts in 2014 as Follows: Common

question 43

Multiple Choice

Moose Momentos had equity accounts in 2014 as follows: Common Stock ($1 Par Value) $120,000;
Retained Earnings 32,000;
Total Shareholder's Equity is equal to:

• A) $90,000.
• B) $92,000.
• C) $122,000.
• D) $152,000.

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Definitions:

Operating Expenses

These are the costs associated with running the day-to-day operations of a business, excluding the cost of goods sold.

Work In Process

A category of inventory for items that are currently being manufactured but are not yet complete.

Finished Goods Inventory

Refers to the stock of completed products that are ready to be sold but have not yet been sold.

Merchandising Firm

A business entity that purchases goods in their completed form and sells them to customers without further processing or manufacturing.