Exhibit 2-1 Total Assets Total Liabilities

question 54

Multiple Choice

Exhibit 2-1
Total Assets Total Liabilities
Beginning of the year $300,000 $130,000
End of the year $800,000 $550,000
-Refer to Exhibit 2-1.Determine the net income (or loss) ,assuming $50,000 of stock was issued and no dividends were paid?

• A)$130,000
• B)$30,000
• C)$80,000
• D)$220,000

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Definitions:

Flash Floods

Rapid flooding of geomorphologic low-lying areas, caused by heavy rain or other sudden water release.

Total Expenditures

The sum amount of all spending or expenses incurred by an individual or entity within a specific period.

Price Elasticity

How the requirement for a good shifts in relation to changes in its pricing.

Midpoint Method

A technique used to calculate elasticity by taking the average of the initial and final quantities and the initial and final values.