During November Kobe Orr Invested $300 in a New Pet-Sitting

question 103

Multiple Choice

During November Kobe Orr invested $300 in a new pet-sitting business Kobe's Cats.During its first month of operations Kobe's Cats performed services and billed customers $750 paid $150 for advertising and collected $500 from customers.Enter these transactions into Kobe's Cats' tabular analysis to determine which of the following statements is true at the end of the month:

• A)The company has assets of $900 and stockholder's equity of $900.
• B)The combined effect of the transactions is to increase Cash by $150 Accounts Receivable by $750 and Stockholders' Equity by $900.
• C)Kobe's Cats has net income of $650 for the month of November.
• D)The combined effect of these transactions is to increase Cash $900 increase Accounts Receivable by $250 and increase Revenues by $1050.

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Definitions:

Inputs

Resources used in the production process, such as labor, capital, materials, and energy.

Production Isoquant

A production isoquant is a curve that represents all combinations of inputs that yield the same level of output, used in production theory to analyze efficient production.

Inputs

The resources, labor, materials, and capital, that are used in the production process to create goods or services.

Profitable

Describing a situation, venture, or entity that generates income in excess of its expenses, thereby yielding a financial gain.