At the End of Its First Year of Operations, Shapiro's

question 8

Multiple Choice

At the end of its first year of operations, Shapiro's Consulting Services reported net income of
$27,000. They also had account balances of: Cash, $16,000; Office Supplies, $3,200; Equipment,
$24,000 and Accounts Receivable, $8,000. The owner's total investment for this first year was
$15,000 and the owner withdrew $2,000 for personal use.
What are the total liabilities of Shapiro's Consulting Services at the end of the first year of operations?

• A)$24,200
• B)$11,200
• C)$42,000
• D)$27,000

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Definitions:

Leisure Time

The period when a person is not engaged in work or essential activities, allowing for rest, recreation, or personal pursuits.

Studying

The act of devoting time and attention to gaining knowledge of an academic subject.

Costs

Expenses incurred in the production of goods or services, including materials, labor, and overhead.

Marginal Analysis

An examination of the benefits and costs of increasing or decreasing production or consumption by one unit.