Golden Enterprises Started the Year with the Following: Assets $50,000;Liabilities

question 153

Multiple Choice

Golden Enterprises started the year with the following: Assets $50,000;Liabilities $15,000;Common Stock $30,000;Retained Earnings $5,000.During the year,the company earned revenue of $2,500,all of which was received in cash,and incurred expenses of $1,500,all of which were unpaid as of the end of the year.In addition,the company paid dividends of $500 to owners.Assume no other activities occurred during the year. The amount of Golden's liabilities at the end of the year is:

• A)$15,000.
• B)$16,500.
• C)$14,000.
• D)$16,000.

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Definitions:

Securities Act

A 1933 United States law that regulates the sale of securities, primarily requiring the disclosure of important financial information through registration of securities.

Aiding and Abetting

The act of assisting or facilitating another person in the commission of a crime by providing advice, financial support, or physical assistance.

Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, to protect investors and maintain fair and orderly markets.

Criminal Liability

The legal responsibility for actions that violate criminal law, potentially leading to prosecution and punishment.