Foxes Service Shop Started the Year with Total Assets of $320000

question 147

Multiple Choice

Foxes Service Shop started the year with total assets of $320000 and total liabilities of $240000. During the year the business recorded $630000 in revenues $450000 in expenses and owner drawings of $60000. Owner's equity at the end of the year was

• A) $80000.
• B) $200000.
• C) $310000.
• D) $370000.

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Definitions:

Thrust Faults

Thrust faults are a type of fault where the upper block, or hanging wall, moves up and over the lower block, or footwall, typically occurring at a low angle and often associated with mountain building.

Normal Faults

A geological fault in which the hanging wall moves down relative to the footwall, typically resulting from extensional forces.

Glacially Carved

Landforms shaped by the movement of glaciers, resulting in features such as U-shaped valleys and fjords.

Metamorphic Rocks

Rocks that have been transformed from their original state by heat, pressure, or chemically active fluids.