A Company Started the Year with the Following: Assets $100,000;

question 195

Multiple Choice

A company started the year with the following: Assets $100,000; Liabilities $30,000; Common Stock $60,000; Retained Earnings $10,000.During the year, the company earned revenue of $5,000, all of which was received in cash, and incurred expenses of $3,000, all of which were unpaid as of the end of the year.In addition, the company paid dividends of $1,000 to owners.Assume no other activities occurred during the year.
-Use the information above to answer the following question.The amount of assets at the end of the year is

• A) $105,000.
• B) 108,000.
• C) $104,000.
• D) $107,000.

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Definitions:

Incidental Beneficiary

A party who indirectly benefits from a contract but has no legal right to enforce the agreement made between other parties.

Donee Beneficiary

A third party that benefits from a contract between two other parties, to whom the promisor's performance is a gift.

Promisee

The individual or entity to whom a promise is made and who stands to benefit from the fulfillment of that promise.

Creditor Beneficiary

An individual or entity that benefits from a contract made between two other parties because of a debt owed to them.