During Its First Year of Operations,a Company Entered into the Following

question 78

Multiple Choice

During its first year of operations,a company entered into the following transactions: Borrowed $20,000 from the bank by signing a promissory note.
Issued stock to owners for $40,000.
Purchased $4,000 of supplies on account.
Paid $1,600 to suppliers as payment on account for the supplies purchased.
What is the amount of total liabilities at the end of the year?

• A)$24,000
• B)$62,400
• C)$64,000
• D)$22,400

---

Definitions:

Latent Tie

A social connection between individuals that is potential and not currently activated or utilized.

Co-worker

A co-worker is an individual who works with others in the same organization or on the same team, often sharing tasks, responsibilities, and goals within the workplace.

Referent Power

A form of influence that stems from an individual's ability to be admired and identified with, leading others to follow out of respect or admiration.