A Company Had the Following Assets and Liabilities at the Beginning

question 85

Multiple Choice

A company had the following assets and liabilities at the beginning and end of the current year: $\begin{array}{lrr} & \text { Assets } & \text { Liabilities } \\\text { Beginning of year } & \$ 428,000 & \$ 176,000 \\\text { End of the year } & 490,000 & 150,000\end{array}$ Common stock in the amount of $30,000 was issued and dividends of $10,000 were paid during the year.What is the amount of net income for the year?

• A)$88,000.
• B)$68,000.
• C)$48,000.
• D)$108,000.

---

Definitions:

Wage Expenses

The total cost incurred by a company for the payment of wages to its employees.

Indirect Expenses

Costs that are not directly traceable to a specific cost object, such as the production of goods or services.

Decentralization

The distribution of decision-making power away from a central authority within an organization to lower levels or divisions.

Controllable Costs

Expenses that management can directly or indirectly control or influence in the short term, such as supplies and advertising.