Fat Possum's Service Shop Started the Year with Total Assets

question 169

Multiple Choice

Fat Possum's Service Shop started the year with total assets of $330,000 and total liabilities of $240,000.During the year, the business recorded $630,000 in revenues, $420,000 in expenses, and paid dividends of $60,000. The net income reported by Fat Possum's Service Shop for the year was

• A)$150,000.
• B)$210,000.
• C)$240,000.
• D)$270,000.

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Definitions:

Utility Function

A representation of a consumer's preferences, modelling satisfaction obtained from consuming goods and services.

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.

Consumption

The use of goods and services by households, leading to a decrease in their quantity or quality.

Utility Function

An economic model that represents how different combinations of products or services can generate various levels of happiness or utility to a person, guiding choices.