Use the Information Below to Answer the Following Questions

question 82

Multiple Choice

Use the information below to answer the following questions.
Fact 20.1.1
At the beginning of 2014, Peter's Perfectly Prickly Piercing Parlour had $5,000 worth of bellybutton and eyebrow rings on hand, 2 computers (each worth $1,000) , 1 cash register worth $100, electrical equipment worth $500, and one piercing needle worth $500. At the end of 2014, they had $5,000 worth of bellybutton and eyebrow rings, a new high speed computer worth $3,000 (they had to throw out the old ones) , the same cash register, which was now worthless, electrical equipment worth $600, and they had upgraded the needle at a cost of $700 which was valued at $1,000.
-Refer to Fact 20.1.1. Peter's capital at the end of 2014 is

• A)$7,000.
• B)$9,600.
• C)$4,400.
• D)$7,600.
• E)$4,000.

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Definitions:

Profitability

A measure of the efficiency and financial success of a business, indicated by the net income over a specific period relative to its revenues.

Organizational Operating Surplus

The excess of revenues over operating expenses within an organization, indicating financial health and efficiency.

Accounting

the systematic process of recording, analyzing, and reporting financial transactions for a business or individual.

Financial Management

The efficient and effective management of money in such a manner as to accomplish the objectives of the organization.