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

question 5

Multiple Choice

At October 1, Smithson Enterprises reported equity of $70,000.During October, capital shares of $10,000 were issued and the company posted a net loss of $6,000.If equity at October 31 totals $70,000, what amount of dividends were paid during the month?

• A)$0
• B)$4,000
• C)$6,000
• D)$10,000

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Definitions:

Assets

Economic resources owned or controlled by a business or individual, capable of producing value and categorized as either current or non-current.

Experience

The knowledge or skill acquired by a person through involvement in or exposure to events, situations, or activities.

Business Opportunities

Circumstances or situations that can be leveraged by entrepreneurs or companies to achieve financial growth or competitive advantage.

Economically Viable

Refers to projects or endeavors that are capable of generating sufficient income to cover their costs and potentially generate profit.