On January 1 of the Current Year, Jimmy's Sandwich Company

question 56

Multiple Choice

On January 1 of the current year, Jimmy's Sandwich Company reported owner's capital totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year Jimmy withdrew $20,000 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in owner's capital during the year was:

• A) A decrease of $9,500.
• B) An increase of $73,500.
• C) An increase of $9,500.
• D) A decrease of $30,500.
• E) An increase of $30,500.

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Definitions:

Palatine Tonsils

Lymphatic tissue located on each side of the throat that helps defend the body against infection by trapping pathogens.

Soft Palate

The flexible, muscular part at the back of the roof of the mouth, which closes off the nasal passages during swallowing.

Hard Palate

Floor of the nasal cavity that separates the nasal cavity from the oral cavity; composed of the palatine processes of the maxillary bones and the horizontal plates of the palatine bones; also called bony palate.

Bolus

A term used to describe a mass of substance, especially chewed food at the moment of swallowing.