Winshare Art Company Has Issued Only Common Stock

question 106

Multiple Choice

Winshare Art Company has issued only common stock. Currently it has 10,000 shares outstanding. The value of the stock is shown as $20 per share. In addition, $100,000 of Winshare's earnings have been reinvested in the business since it was founded. What is Winshare's total owners' equity?

• A) $300,000
• B) $200,000
• C) $100,000
• D) $2,000,000
• E) $100,020

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Definitions:

Discount Period

The timeframe during which a payment can be made at a reduced price or with a deduction from the full invoice amount.

Sales Discounts

A reduction in the sale price offered by a seller to a buyer for prompt payment or within a specific time period.

Accounts Receivable

Customers' financial commitments to a firm for goods or services taken, pending reimbursement.

Perpetual Inventory System

A method of accounting that instantly records inventory sales or purchases using computerized point-of-sale systems and enterprise asset management software.