Scenario 13-3 Zach Took $500,000 Out of the Bank and Used It

question 167

Multiple Choice

Scenario 13-3
Zach took $500,000 out of the bank and used it to start his new cookie business.The bank account pays 4 percent interest per year.During the first year of his business, Zach sold 15,000 boxes of cookies for $3 per box.Also, during the first year, the cookie business incurred costs that required outlays of money amounting to $14,000.
-Refer to Scenario 13-3.What was Zach's accounting profit for the year

• A)-$455,000
• B)-$56,000
• C)$1000
• D)$31,000

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Definitions:

Calderas

Large, circular depressions formed when a volcano collapses into a void left after the eruption and evacuation of its magma chamber.

Folds

Folds are bends in rock layers or strata, resulting from compressional forces and pressure, integral to the study of structural geology and mountain building.

Iron-Ore Deposits

Concentrations of iron minerals within the Earth that can be mined and processed to extract iron metal.

Iron Formations

Geological formations composed of layered sediments and minerals, predominantly iron-rich, that were deposited in ancient oceanic and lake environments.