Scenario 13-2 Zach Withdrew $400,000 Out of His Personal Savings Account and Account

question 178

Multiple Choice

Scenario 13-2
Zach withdrew $400,000 out of his personal savings account and used it to start his new cookie business.The bank account pays 3 percent interest per year.During the first year of his business,Zach sold 6,000 boxes of cookies for $2.50 per box.Also during the first year,the cookie business made monetary outlays of $9,000.You may assume that there is no opportunity cost to Zach's time.
-Refer to Scenario 13-2.Zach's accounting profit for the year was

• A) $-494,000.
• B) $-6,000.
• C) $6,000.
• D) $12,000.

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Definitions:

International Company

A business enterprise that operates in multiple countries beyond its original or home country.

Environmentally Responsible

The commitment to making decisions and taking actions that are in the best interests of protecting the natural world, with a particular emphasis on preserving the capability of the environment to support human life.

Image

The representation or perception of someone or something in the mind of the public or specific groups of people.

Ethical Dilemmas

Situations in which a person is required to choose between two conflicting moral principles, making it difficult to decide the right course of action.