At October 1, Smithson Enterprises Reported Equity of $70,000

question 164

Multiple Choice

At October 1, Smithson Enterprises reported equity of $70,000.During October, no capital shares were issued and the company posted a net loss of $6,000.If equity at October 31 totals $64,000, what amount of dividends were made during the month?

• A)$0
• B)$2,000
• C)$6,000
• D)$21,000

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Definitions:

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Typical Family

A standard or average family unit, often used in statistical analyses to represent an average household.

Standard Of Living

The degree of wealth, comfort, material goods, and necessities available to an individual, group, or society.

Inflation Rate

The rate expressed as a percentage at which the average price level of goods and services increases, leading to a decrease in purchasing power.